Derik Graham, Chapter 7, Question 6/7

The passage that I found the most interesting was that of Wheelan's comparison of his mother-in-law and the Harvard Endowment. This brings me back to the comment I made earlier saying that capitalism is suited for those who are able to compete. What I took away from this section is that financial markets are designed in a way that lets the average Joe invest some money and make some pretty good returns once in a while on his hopefully diversified stocks. The catch however is that the average Joe, unlike the Harvard Endowment, doesn't have large amounts of capital to be spreading across many opportunities. The Harvard Endowment however is able to do so and continues to gain money because it has more to spare. In comes the old saying that to make money you have to spend it. The beauty of the financial market is that it allows everyone to compete, but the people with the most money are able to get the biggest returns.