How much do you/I value 10% return?
I recently asked myself this question.
We always hear about theoretical 5% or 7% or 10% annual returns, then we project it over 50 years and anyone can get rich.
Of course, life isn’t so simple.
Recently I thought about guaranteed 10% return.
Getting a guaranteed 10% return on an investment for 1 year is quite a good return.
Getting guaranteed 10% return over a 2 year investment isn’t too bad.
Getting guaranteed 10% return over a 3 year investment is starting to become like a FD.
4 years is under 2.5%, some people are ok with this. Well, it’s still a good FD rate.
5 years, also still a good FD rate.
What if the chance is 90% chance of 10% return?
When the market is doing poorly… Example like 6 months ago.
There are a lot of bargain opportunities. So there’s good chance to make 20%, 30% returns on other stocks.
And there’s a stock that has a