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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (54681)1/2/2015 11:40:19 AM
From: Jurgis Bekepuris  Read Replies (4) | Respond to of 78618
 
Graham has said that the stock market is not a place where one should expect to get rich from investing (value investing).
Graham was a known party pooper. ;)

I'll repeat what Buffett said: that he could do 50% annualized if he was managing small sums of money. I believe that 20% a year is definitely achievable by good investors. 10% - if I remember correctly, you have a 10+ year annualized return over 10%. Actually, so do I. And I consider myself crappy investor as evidenced in last 3 years. So 10% is a very low hurdle.

Remember that in the past, an investor could just dollar-cost-average into BRKa and they would have achieved returns in excess to 10%. Very simple approach, not requiring spending time on SI or analyzing hundreds of companies. If I did that when I started in 199x's, I'd be much richer now. The approach might still work even now although it becomes harder and harder each year at BRK grows bigger and bigger.

I agree that most people cannot achieve 10%, since it requires more than just index fund selection and asset allocation.