Bill Gross is arguably one of the most successful money managers in the world. The founder and chief investment officer of the world???s largest bond fund, Pacific Investment Management Co. (PIMCO), is a billionaire, and he???s made his money by expertly helping investors successfully allocate money to the bond market. I???ve owned several PIMCO funds over the years, and they have nearly always performed well for me. For that, I would like to thank Mr. Gross, as I am more than happy to pay him and his firm a fee for providing a service that has helped make my life better.
Unfortunately, while Mr. Gross has earned his billions via his risk taking, money management expertise and nearly unrivaled knowledge of the intricacies of the bond market, apparently he now feels guilty for having helped investors just like me improve our lives.
In the November issue of his PIMCO Investment Outlook, which bears what I am sure he thought was a cute title, ???Scrooge McDucks,??? Mr. Gross admits the guilt he feels for what he calls, ???Having gotten rich at the expense of labor.??? Gross goes on to essentially scold his fellow successful businessmen and wealthy individuals in the following fashion:
???Admit that you, and I and others in the magnificent ???1%??? grew up in a gilded age of credit, where those who borrowed money or charged fees on expanding financial assets had a much better chance of making it to the big tent than those who used their hands for a living.???