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j2eeprofessiona
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Joined: 13/Sep/2008
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   Posted: 26/Apr/2010 at 2:23pm |
Originally posted by yogishkamath
It's very hard to go up more than a level in one year unless you are leveraged and/or very very lucky.
Last year was extraordinary. We aren't going to get such a year for a very long time.
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be you do not need good year to build ur networth. the beauty of stock markets is that you need a tinge of luck combined with good research and a strong conviction. if ur research is good than you do not need to track the sensex, the individual stocks that comprise ur portfolio should go up. atleast with the god's grace mine is going up big time and am sure i am not alone.
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yogishkamath
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Joined: 28/May/2009
Location: India
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Posted: 26/Apr/2010 at 3:05pm |
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Well, I do agree that good research and conviction will give good rewards, but it takes time.
We won't get a 5 fold increase in the value of our portfolio unless there is a strong tailwind of the sort we had last year.
Even with a decent CAGR of 30 %, it will take 6 years to quintuple your money.
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j2eeprofessiona
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Posted: 26/Apr/2010 at 3:20pm |
Originally posted by yogishkamath
Well, I do agree that good research and conviction will give good rewards, but it takes time.
We won't get a 5 fold increase in the value of our portfolio unless there is a strong tailwind of the sort we had last year.
Even with a decent CAGR of 30 %, it will take 6 years to quintuple your money.
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30% CAGR is ok for people with less risk apetite. but not for higher risk apetite guys
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LearningToFly
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Posted: 26/Apr/2010 at 3:35pm |
What...
30% CAGR is just ok for less risk appetite???
I don't think there is anyone on on the planet who has achieved this CAGR for 20-30 years.
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Success... at all cost.
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yogishkamath
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Posted: 26/Apr/2010 at 3:37pm |
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"Aam aadmi" like me is happy with 30% CAGR.
If done for 40 years with starting capital of a "modest" 5 lakhs, you end up with 1800 crores !!!
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j2eeprofessiona
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Posted: 26/Apr/2010 at 5:20pm |
Originally posted by LearningToFly
What...
30% CAGR is just ok for less risk appetite???
I don't think there is anyone on on the planet who has achieved this CAGR for 20-30 years. |
yes, i know the famous example of respected mr. warren buffet has around 23% CAGR, but so far with god's grace i have done much much better than 30% CAGR. lets see, what more life has in store for me. till then... i'll let my research back my returns.
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vivekbhauka
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Location: India
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Posted: 26/Apr/2010 at 5:27pm |
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talking about carg is useless unless u talk about the interest rates of that country.if intyerest rates of a country is normally 30% then a cagr from stock markets at 30% is nothing.i can simply do a fixed deposit.
in usa interest rates risk free returns--which i say is suppose 3-4%.there carg of 24% is different than in india-(interest rates 8% ppf-nsc)carg of 24%.here carg will be inexcess of 35-38% if u take into account the interest rates.
same thing applies to p/e levels.if interest rates are low as in usa p/e will be high.but in high interest rates p/e of that country should be low.u cant compare country wise p/e ratio without keeping a/c interest rates differnetials.
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yogishkamath
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Joined: 28/May/2009
Location: India
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Posted: 26/Apr/2010 at 5:48pm |
30% CAGR in India, not Zimbabwe  Let's say it becomes 24% adjusted for inflation. (Assuming 6% inflation) So, 5 lakhs becomes "only" 273 crores (inflation adjusted) in 40 years.
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