Where's the money? Tech, gambling, and oil

[billygrippo]

lets build a super-high-tech oil drilling company that offers roulette to its employees and invests in hedge funds.

[kyleb]

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lets build a super-high-tech oil drilling company that offers roulette to its employees and invests in hedge funds.

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This man is a GENIUS. Contact me with a business plan and I'll fund it.

[billygrippo]

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This man is a GENIUS. Contact me with a business plan and I'll fund it.

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i thought i just did?

[hanster]

http://www.forbes.com/lists/2007/54/...Bren_31KV.html
I lived here for almost 10 years and didn't have the slightest clue this guy and Irvine Company made so much money. Amazing

[shaniac]

http://www.forbes.com/lists/2007/54/...mily_ZPFO.html

Oldest guy on the list...made his money on potatoes!

"Ongoing controversy: company has cloned cows in past few years."

[wet work]

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http://www.forbes.com/lists/2007/54/...mily_ZPFO.html

Oldest guy on the list...made his money on potatoes!

"Ongoing controversy: company has cloned cows in past few years."

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McDonald's sells alot of french fries.

[RUFFNECK]

No one noticed the youngest entry was EL D's idol John Arnold.

[pig4bill]

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ah,
Interesting to look at how much personal wealth gets created by finance guys vs. tech guys. I too am not sure how that goes longer term.

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Good HF managers are not going to be poor anytime soon. PE is more dependent on public markets being receptive to IPOs and easy credit, a good long-short mgr can obviously do well for years in a bear market. Tougher for PE/VC to achieve that.

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yes but will they always be able to command such huge compensation?

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Of course, as long as they perform. Hedge funds charge 2 and 20. 2% of the account plus 20% of the profits on the year. Keep bringing in the high returns and you get paid accordingly.

[APXG]

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most of the new guys are PE/hedge fund people. Not sure if thats gonna be a long term thing or era specific.

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Unless there is collapse of the modern financial system and hedge funds are outlawed, these guys will literally take over that list in 10-15 years.

HFs have only exploded a few years ago, so most future superstars are not even on that list yet. How many under30 potential superstars are there now compared to 10 yrs ago?

The ones who are on the list have the ability to generate 25-30% annualized returns on personal assets. None of the Forbes entrepreneurs could even approach such numbers on a long term basis b.c. they are stuck in their 1 specific stock and fully pinned to its performance, and the companies have become so big that the founder can no longer add much personal value, which is what allowed him to become a billionaire in the first place.

Also, top HF managers have given up innumerable amounts of value until the past few years by a)unnecessarily contributing to the P&L of ibanks / other funds for too long and b)undercharging fees for their alpha by not accepting new money, rather than allowing for fees to be set in an open market. This will undoubtedly correct as the industry becomes more efficient and the huge number of managers who are effectively massively overcharging given their lack of performance will cease to exist, with the savings being split amongst the LPs and the alpha generators, who will actually end up with much higher compensation than now.

[Marwan]

13 of the 400 have been jailed or convicted.. so I guess crime does pay!