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Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

- Bill Gross
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Author:
Bill Gross
Tags:
Money
Equity
Borrow
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My clients don't pay me to feel sorry; they pay me to bring them money. I am tough, but I have a soft side.

I would admit I'm an introvert. I don't know why introverts have to apologize.

In terms of economic growth, PIMCO originated the famous phrase the 'new normal.'

Bonds as an asset class will always be needed, and not just by insurance companies and pension funds but by aging boomers.

It's sort of like a teeter-totter; when interest rates go down, prices go up.

If financial assets no longer work for you at a rate far and above the rate of true wealth creation, then you must work longer for your money.

Americans now know that housing prices can go down and they can go down by 10, 20, 30, and in some cases, 40 or 50 percent. We know they can go down. But five years ago, we thought they could only go up.

Whether a tops-down or bottoms-up investor in bonds, stocks, or private equity, the standard analysis tends to judge an investor or his firm on the basis of how the bullish or bearish aspects of the cycle were managed.

In questioning initially whether I am a great investor, I open the door to question whether other similarly esteemed public icons like Bill Miller are as well. It seems, perhaps, that the longer and longer you keep at it in this business the more and more time you have to expose your Achilles heel - wherever and whatever that might be.

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Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.

Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.