| | | "I'd like to have long term return of 10% annualized please."
Yes, questionable whether such a number is so high that it can be assuredly achievable.
At some point demanding high returns I view as beating up on your money. A person say 50 years old who now realizes he has to make 15% on his investments going forward is asking more from his money (portfolio) than it is likely to deliver.
Couple things:
One, I believe Graham has said that the stock market is not a place where one should expect to get rich from investing (value investing).
Imo, having an objective of 10% annual is one step backward from the goal. That is, the goal is such-and-such, the person is at some point in the financial continuum (has $x invested) and consequently needs y% over time to achieve the goal. In my case, my financial long-term goal over the past 40+ years has wavered sometimes -- I wanted to be rich when I was younger, and somewhat now too (not sure why, ego?) - but basically it has been constantly in front of me since I started working, namely: I wanted to have enough money when I retired such that I could replace my final salary&benefits with income from my investments and social security. |
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