Most of my friends know that I have involved in stock market investment for years. The very first question they tend to ask me is about the amount of return. Without revealing my actual capital for investment, I normally reply them with a relative value, that is, around 10% annually. After knowing that investment in stock market is only about 10% return annually, most of them appear to be disappointed or to have no more interest to know more about my investment in stock market.
Well, I am quite used to this kind of experiences. In fact, most people rather to spend their time to learn or hear more about "how to be rich in days" instead of "how to maintain 10% annual compound return ".
Nonetheless, I still have a very strong philosophy that allows me continue what I have persisted for years - financial freedom via value investment in stock market. The idea is quite simple. Indeed, the 10% may appear quite insignificant for you if your capital is only around 10 thousand dollar. Your return will be around one thousand for one year or less than 100 dollar per month.
However, please bear in mind that there are many people who have 10 million dollar capital for investment. Thus, 10% return annual for them is equivalent to one million dollar annual return!
Rome was not built in one day. 10 million dollar capital for investment was not accumulated within one day too!
Personally I do not like to take unnecessary risk or short-cut to achieve what I want. Consequently, I seldomly participate some sorts of gambling or lottery game. They may be excited. They may provide more than thousand times of return in days. However, they are luck-based and unpredictable. Most importantly, only insignificant number of people will be winners for this kind of activities.
Lastly, if you believe that you will eventually have a capital of 10million (or more or less) in the future, an investment skill of 10% annual return may be suitable for you to generate attractive cash flow annually.
Opportunity is only for those who are well prepared. Instead of waiting for your 10million dollar capital, why do you start to learn how to generate your desired yet realistic return rate (say 6~15%) first.
That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage for latest sharing.
Written by: Xaivier Chia
Well, I am quite used to this kind of experiences. In fact, most people rather to spend their time to learn or hear more about "how to be rich in days" instead of "how to maintain 10% annual compound return ".
Nonetheless, I still have a very strong philosophy that allows me continue what I have persisted for years - financial freedom via value investment in stock market. The idea is quite simple. Indeed, the 10% may appear quite insignificant for you if your capital is only around 10 thousand dollar. Your return will be around one thousand for one year or less than 100 dollar per month.
However, please bear in mind that there are many people who have 10 million dollar capital for investment. Thus, 10% return annual for them is equivalent to one million dollar annual return!
Rome was not built in one day. 10 million dollar capital for investment was not accumulated within one day too!
Personally I do not like to take unnecessary risk or short-cut to achieve what I want. Consequently, I seldomly participate some sorts of gambling or lottery game. They may be excited. They may provide more than thousand times of return in days. However, they are luck-based and unpredictable. Most importantly, only insignificant number of people will be winners for this kind of activities.
Lastly, if you believe that you will eventually have a capital of 10million (or more or less) in the future, an investment skill of 10% annual return may be suitable for you to generate attractive cash flow annually.
Opportunity is only for those who are well prepared. Instead of waiting for your 10million dollar capital, why do you start to learn how to generate your desired yet realistic return rate (say 6~15%) first.
That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage for latest sharing.
Written by: Xaivier Chia
P/S: The above sharing is solely based on personal insight and information that believed to be reliable. Your valuable feedback are very welcome.
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2 comments:
congrats...do share yur stock picks...tq...so u more than double yur capital every 10yrs? when u started share investment? I got burnt in 2007 by TRANSMIL...now I m in fx...
Hi Mike,
Welcome to my blog.
In this ever-changing era, the life cycle of a business is almost unpredictable. Thus, we need to catch-up and follow-up the development of our business.
I am still a newbie and learner in stock market investment. In the last three years, by practising value investment strategy, I do enjoy and experience the potential of investment to improve my financial. Thus, I quite believe that stock market investment is a good way to assist me to reach financial freedom eventually.
For value investing, we focus on acquire good business with attractive price. Therefore, lots of homeworks need to be done first before making any decision.
For Forex, personally, I am unable to understand its mechanism so I do not touch it.
To be success, we need to learn from mistakes, and then avoid similar mistakes.
If you are interested in share investment, you can try to figure out why you got burnt by Transmil first.
Best wishes,
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