PUBLIC SERVICE ANNOUNCEMENT
There is a person on this board who believes that using some system it is possible to achieve consistent annualized returns of 30-40%. He claims that some people from the board have PMed and emailed him to get the details of his methods.
I have no objection to people learning from the said person. He does have a rather decent understanding of company financials, so people definitely might learn something useful from him.
I must caution people that consistent 30-40% annualized returns have not been achieved in the investment history even by some of the best investors ever. It may be difficult to look up data for a lot of them, but at least Buffett provides it for Berkshire every year:
berkshirehathaway.com
The longest Buffett has achieved >30% annualized returns is 4 years in a row. Now, BRK is a huge enterprise, so it is possible for smaller investors to do better, but Buffett is also one of the most successful investors of all time.
So I would suggest not basing your future financial plans on the expectation that your capital will grow at 30-40% every year. To do so will not only most likely lead to disappointment, it may also lead to irrational and potentially damaging behavior when those expectations are not met.
In fact, if you can get a consistent annualized return of 15%, you will be very successful. Most people don't get that. (Note that I repeatedly say "consistent". If you get 30-40% on some years, you can have down years too. If you get 15% on best years, there's much less margin for failure in bad years!)
So plan for less. At least if you will be surprised, you will be surprised on the upside.
Good luck
END OF PUBLIC SERVICE ANNOUNCEMENT
I would rather not return to this topic anymore, but somehow I don't think this will die that easily. :( |
