Speaking of the obvious? Absolutely not. Having more capital does not mean that you can turn a greater profit proportionately. That was what I believed as well but it was very much untrue. The truth is that capital does very little in increasing your profits proportionately once you have reached the threshold of your tranche size. This means that if you have predetermined that your maximum tranche size is $10,000, then regardless of how much cash you have left, you would probably deploy capital in those tranches rather than increasing the tranche size. In today’s post, I would like to debunk what most investors think about those who have larger amounts of capital. Actually, the only guaranteed increase when you have more capital is the risk associated with stress and fear so do not envy blindly.
