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TopicHow much United Airlines stock should I currently buy?
The Admiral
04/12/17 3:55:32 PM
#44:


meingott posted...
The Admiral posted...
If you were distributing the return every week and just keep the principal invested, your annual return would still be 208% (4*52). In either mechanism, the "barely anything" remark is nowhere close to reality.


that's only if it were to give you a consistent 4% per week. which is insane. we both know it wouldn't. let's face it, the only reason you're arguing this case is because you work in the industry and make money off of the trade fees or some shit.


No, I'm arguing because you don't understand basic finance. If you tell a hedge fund trader that he'll make a 4% return on his equity trades next week, he'll be ecstatic.

I'm not commenting specifically on UAL at all (I actually don't think it's a good buy), simply on the fallacious way you are viewing returns. A 4% weekly return from anything is amazing, and you should take it anytime you can get it with acceptable risk.
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- The Admiral
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