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#1
10-15-2007, 11:14 PM
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50% returns on small amounts?
I read in the "How much money will i have after 3 years?" that it's entirely feasible to get ridiculous returns with small amounts of money. Is this common? What kind of money manager can do this or must it be done by oneself?
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#2
10-15-2007, 11:57 PM
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Re: 50% returns on small amounts?
I think the more you concentrate your investments, the higher the chance of getting 50% return would be, but obv at the same time the chance of losing would equally increase. If money managers could get you 50% return why would they waste theri time with you and not get 50% on their own money year after year DUCY?
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#3
10-16-2007, 12:00 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
I think the more you concentrate your investments, the higher the chance of getting 50% return would be, but obv at the same time the chance of losing would equally increase. If money managers could get you 50% return why would they waste theri time with you and not get 50% on their own money year after year DUCY? [/ QUOTE ] Just because you know how to get 50% per year does not mean you have the funds to fully take advantage of that 50% per year. You can invest your own money, and after you run out of your own money, continue to invest others for a fee. DUCY? Not everyone who can beat the market is rich, and not everyone who is rich can beat the market.
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#4
10-16-2007, 12:07 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
[ QUOTE ] I think the more you concentrate your investments, the higher the chance of getting 50% return would be, but obv at the same time the chance of losing would equally increase. If money managers could get you 50% return why would they waste theri time with you and not get 50% on their own money year after year DUCY? [/ QUOTE ] Just because you know how to get 50% per year does not mean you have the funds to fully take advantage of that 50% per year. You can invest your own money, and after you run out of your own money, continue to invest others for a fee. DUCY? Not everyone who can beat the market is rich, and not everyone who is rich can beat the market. [/ QUOTE ] LOL.... how famour is Peter Lynch (and how [censored] rich) and he didnt beatthe market for 50%.... if you could beat the market for 50% even for a few years before your portfolio grows too bg you be set and then trade ur own money no?
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#5
10-16-2007, 12:08 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
I think the more you concentrate your investments, the higher the chance of getting 50% return would be, but obv at the same time the chance of losing would equally increase. [/ QUOTE ] o rly? does that mean that the converse is true and that diversification reduces your volatility? i think you're onto something groundbreaking here...
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#6
10-16-2007, 12:13 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
[ QUOTE ] I think the more you concentrate your investments, the higher the chance of getting 50% return would be, but obv at the same time the chance of losing would equally increase. [/ QUOTE ] o rly? does that mean that the converse is true and that diversification reduces your volatility? i think you're onto something groundbreaking here... [/ QUOTE ] Well, you are welcome..... [img]/images/graemlins/wink.gif[/img] I figured OP didn't realize that investing in a broad index in a developed country or something like that 50% return would not be very likely. And the only way to get 50% returns would be by taking big risks...
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#7
10-16-2007, 12:14 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] I think the more you concentrate your investments, the higher the chance of getting 50% return would be, but obv at the same time the chance of losing would equally increase. If money managers could get you 50% return why would they waste theri time with you and not get 50% on their own money year after year DUCY? [/ QUOTE ] Just because you know how to get 50% per year does not mean you have the funds to fully take advantage of that 50% per year. You can invest your own money, and after you run out of your own money, continue to invest others for a fee. DUCY? Not everyone who can beat the market is rich, and not everyone who is rich can beat the market. [/ QUOTE ] LOL.... how famour is Peter Lynch (and how [censored] rich) and he didnt beatthe market for 50%.... if you could beat the market for 50% even for a few years before your portfolio grows too bg you be set and then trade ur own money no? [/ QUOTE ] No, even if you scrap together $10,000 (a lot of money for most people -- maybe not you) it will take years of 50% returns before that money becomes significant enough to move the market -- in the mean time you could manage a fund (kind of like peter lynch did) to make more money as you go along.
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#8
10-16-2007, 12:15 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] I think the more you concentrate your investments, the higher the chance of getting 50% return would be, but obv at the same time the chance of losing would equally increase. [/ QUOTE ] o rly? does that mean that the converse is true and that diversification reduces your volatility? i think you're onto something groundbreaking here... [/ QUOTE ] Well, you are welcome..... [img]/images/graemlins/wink.gif[/img] I figured OP didn't realize that investing in a broad index in a developed country or something like that 50% return would not be very likely. And the only way to get 50% returns would be by taking big risks... [/ QUOTE ] It's not a big risk to get 50% if you do your research, according to Warren Buffet. I can quote big names too.
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#9
10-16-2007, 12:28 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] I think the more you concentrate your investments, the higher the chance of getting 50% return would be, but obv at the same time the chance of losing would equally increase. If money managers could get you 50% return why would they waste theri time with you and not get 50% on their own money year after year DUCY? [/ QUOTE ] Just because you know how to get 50% per year does not mean you have the funds to fully take advantage of that 50% per year. You can invest your own money, and after you run out of your own money, continue to invest others for a fee. DUCY? Not everyone who can beat the market is rich, and not everyone who is rich can beat the market. [/ QUOTE ] LOL.... how famour is Peter Lynch (and how [censored] rich) and he didnt beatthe market for 50%.... if you could beat the market for 50% even for a few years before your portfolio grows too bg you be set and then trade ur own money no? [/ QUOTE ] He managed a mutual fund, which has a ton of restrictions that an individual or a hedge fund won't have.
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#10
10-16-2007, 12:30 AM
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Re: 50% returns on small amounts?
Finding an investment that can return 50% is simple.
Finding an investment with an expected (average) return of 50% is not simple. The only reasonable way to do it is by using leverage (borrowing heavily), which is very risky.
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