I Could Do Better Investing In Stocks, But Why?

By | October 12, 2020

In this post, I am going to examine goals. When I was originally starting out investing again three years ago, I was looking at about 20% yearly gain as a difficult bar to surpass. Well, now I know that a 140% return is possible investing in just little ole individual stocks. Not forex, not options, not speed investing, formulas, or chart readings. Just investing in 10 good companies at decent prices.

Now if your goal is to double your principle every year, you might be disappointed because some years are better than others. I figure now I’m shooting at about a 50% gain per year, or to at least beat the NASDAQ 100 index. I think this is a very doable goal. I also think that the amount of actual risk I am taking is not that great. I may see some volatility but as long as I don’t sell everything it is ok.

Some may say that I don’t have a balanced portfolio or that I could not possibly beat the indexes with just 10 stocks. I say otherwise. Now in three years I have not lived through all possible market variables. True. But I have invested before, and I have done lousy before in all kinds of different market conditions. Because I was leaning on mutual funds or ETFs whose only goal is to do a little better than the indexes. I made up my mind to learn how to invest successfully myself. And I looked to winners like Warren Buffet for wisdom.

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I guess I got off topic a little. I was originally talking about goals. If you are shooting around 20% and are over 30, you are probably shooting too low. But if you are over 50, a goal of 100% return may be unrealistic, especially if you can’t handle the ups and downs. That’s why I like to say my goal is about 50%. The results on this return over 15 years are exceptional. Why do I need more?

Here’s the other interesting thing for me: I am starting to branch into investing within my corporation. Most of the business is technology consulting, but I feel like I am doing well enough to make investing a chunk of the business. And guess what else? I am not looking to raise money. It just kind of seems like a hassle to me. I don’t want to answer to investors. I will just use my own money and I will make plenty.

I am super excited by my returns each year. I am nowhere near disappointed. I think very good days are ahead.

More reading:

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