Me & My Money Series (Sunday Times)

[yeokiwi]

Yup! A good warning to all. My point was made in jest to an investor of 10 years who may be happy with a 5% annualised return. In my case, my benchmark is against the STI during bull periods and against the risk free rate (long term SGS bonds) during bear periods. During the last 20 years, I'd estimate we must have gone through at least 2-3 such cycles.

The last ten years of economic growth is rather unique in Singapore's history. Those who got on the train and achieved more than 20% growth annualised return had their lucky stars to thank for.

Looking forward, I can hardly see how the GDP will enjoy the same kind of growth.
But, I may be wrong since I had never foreseen the economic growth that we had experienced in the last ten years too.

Sadly, more analysis may not bring better returns.

For better returns, there is a need to take on higher risks by buying high growth companies. Sadly speaking, REITs, blue chips and most dividend stocks are quite unlikely to fall into this category under normal time.

I still prefer small caps. There is always a good chance that their businesses can double or triple.