- Wed Feb 24, 2016 10:03 am
#69057
Trump himself has said he got 1 million from his father -- not as a business share, but a true inheritance.
As to the rest:
We used $40 million as the starting point for 1974. Honghui Chen, associate professor of finance at the University of Central Florida, told us the account would have grown to $3.94 billion by November 2015 if the money had followed the S&P 500 index and all dividends had been reinvested.
This is a rough calculation that ignores taxes owed on dividends, but it’s on the same scale as what the National Journal reported.
Chen said it’s trickier to calculate the value of $200 million invested in 1982.
"Because the stock market in 1982 was quite volatile, the current value of $200 million investment in 1982 would depend on the time at which it was initially invested," Chen said.
If it went in right at the end of 1981, it would be worth $6.7 billion. Invested in June 1982, the value today would be $8.3 billion. Invested at the end of 1982, it would be worth $9 billion. Again, in the neighborhood of what the Journal said.
Occupy Democrats shared an image that said if Trump had taken the money he got from his father and simply put it in a fund that tracked the S&P 500, he’d have $8 billion today. While it's true that Trump got a leg up from his father on the order of many tens of millions of dollars, this specific claim suffers from a key flaw.
The only way to hit the $8 billion mark is to start with $200 million in 1982, and it's wrong to say that was Trump's father's money. While the father's business put Trump on the path to have $200 million in 1982, Trump himself had been running the company for eight years.
We rate this claim False.
As to the rest:
We used $40 million as the starting point for 1974. Honghui Chen, associate professor of finance at the University of Central Florida, told us the account would have grown to $3.94 billion by November 2015 if the money had followed the S&P 500 index and all dividends had been reinvested.
This is a rough calculation that ignores taxes owed on dividends, but it’s on the same scale as what the National Journal reported.
Chen said it’s trickier to calculate the value of $200 million invested in 1982.
"Because the stock market in 1982 was quite volatile, the current value of $200 million investment in 1982 would depend on the time at which it was initially invested," Chen said.
If it went in right at the end of 1981, it would be worth $6.7 billion. Invested in June 1982, the value today would be $8.3 billion. Invested at the end of 1982, it would be worth $9 billion. Again, in the neighborhood of what the Journal said.
Occupy Democrats shared an image that said if Trump had taken the money he got from his father and simply put it in a fund that tracked the S&P 500, he’d have $8 billion today. While it's true that Trump got a leg up from his father on the order of many tens of millions of dollars, this specific claim suffers from a key flaw.
The only way to hit the $8 billion mark is to start with $200 million in 1982, and it's wrong to say that was Trump's father's money. While the father's business put Trump on the path to have $200 million in 1982, Trump himself had been running the company for eight years.
We rate this claim False.
- By johnforbes
- By brandon