Don't Feel Bad For Donald Sterling, He Made A Killing In Profit, Now Who's Laughing Last
Whether he likes it or not, Donald Sterling is poised to sell the Los Angeles Clippers to Steve Ballmer, the former Microsoft chief executive. And, for $2 billion, whatís not to like about it? By some reports, Sterling bought the Clippers for $12.5 million in June 1981, and heíll get a tidy 15,900 percent return over 33 years, an annualized rate of 16.6 percent. In fact, heís probably done even better than that, because of the distributions of profits during the years of ownership.
To say the least, the rate of return is very impressive. Itís a much better performance than most of the ways Sterling could have invested his money.
For example, itís about four and a half times the return he would have gotten by putting his money in the stocks of the S&P 500 index and reinvesting the dividends.