Dr Gary Michelson, fund, bad investor, Karlin Asset |
In 2005 Forbes/Gary Michelson said he was worth $1.36B. Today in 2013 Forbes/Gary Michelson says he's worth $1.5B. He's made $140,000,000 since 2005. He already owned his $5M home in Brentwood in 2003. He states he hasn't bought a car, clothes....since his win. He has just been investing his money. We know he only spent $5M max on his foundations.
If I use the standard compound interest rate formula for monthly, he started with $1.36B and now has $1.5B. That means he made $140,000,000 in seven years. If we compound that (he reinvests his interest every month making interest on interest), he makes 1.4% max return on his investments. That's a shitty rate of return. Why in the world is he bragging that he is a wise investor with Karlin Asset Management and all his funds? I'm using this basic formula M=P(1+i)n Where M = final amount, P=principle amount, i=interest rate and n=number of years.
When I took at look at Gary Michelson's funds I noticed he just had a bunch of young guys with degrees running things. He doesn't have any experienced finance people. Gary Michelson likes to go with younger inexperienced people. On some of his boards he even has a politician. Mind you he is paying all these people a hefty salary. He is paying all these people hefty salaries to run his funds and they're making him less money than a checking account.
Just to give you a reference point here Warren Buffett makes 18% return on his investment. Even the S&P makes 11% return. When Buffett ran Berkshire Hathaway he made 21% annual return. Even from 2007 to 2011 during the recession Buffett had a return of 42% while S&P lost 1%. Gary Michelson should have invested his money with Buffett instead of these young kids.
I don't know if Gary Michelson realizes this. He thinks people with degrees in business and finance will make him money. He obviously has not read the research which shows that people with graduate degrees in finance actually make less money than people without graduate degrees in finance. Heck, look at Steve Jobs, Bill Gates who dropped out of undergrad. In fact there is research which shows the higher the education, the less money someone makes out of college. We are talking about people who have at least graduated from high school and have had some under grad.
What's really ironic here is the people he is suing for supposed fraud which never happened actually made more money for Gary Michelson than anyone else. I'm starting to wonder if David Cohen who runs things for Gary Michelson maybe told Gary that the teak farms are the reason he's only made 1.5% ROI when it's actually David Cohen's really shitty investments instead. Is someone churning investments, stocks, bonds for a commission, kick back, bonus? How else could Gary Michelson only be making 1.4%?
In 2005 he stated he would give away all $1.35B from the lawsuit win. It's been seven years and he's given max $5M or .003%. Gary Michelson is just a lot of hot air and false promises. He likes to brag that he's a brilliant inventor when he actually stole his major patent. He just filed the paperwork a couple of months before the real inventors. Instead of making the actual item he let others make it then he sued the shit out of them. He didn't make a threaded spinal cage until I think seven years after he filed the patent. He didn't use one until after that.
Gary Michelson likes to brag that he's a savvy investor. He likes to brag that he's using his money to solve problems. He's a shitty investor and he's not using his money to solve problems. I wish I realized that Gary Michelson was a fraud back in 2005. I never would have had anything to do with him. I pity anyone who works with him. Gary Michelson is like the monkey's paw. It's better to stay away from any grant or job offer from Gary Michelson. Gary Michelson doesn't keep his promises, offers money then doesn't deliver, offers jobs to "help animals" and just ends up stabbing people in the back for no reason.
You could make him $100M like he made in the teak farms and he'll still want to, try to kill you. In fact, I just realized that most of the money Gary Michelson has made in the last seven years came from his teak farms. And these are the people he sued for supposed fraud. That means that David Cohen is most likely ripping him off. If we back out the $100M from the farms, Gary made .4% return on his non-teak farm investments. That's less than a checking account. Gary obviously cannot tell the difference between friend or foe. He needs to go back to staying at home and tinkering in his garage.
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