06-04-2013, 05:27 PM
(06-04-2013, 03:19 PM)paullow Wrote:(06-04-2013, 03:10 PM)Musicwhiz Wrote:(06-04-2013, 03:01 PM)TheMillennium Wrote: how do u gauge what is a "good" %? is it all on personal aims/goals? or is there a rough number which i can try to aim for?
Thanks!
The long-term return for investing is equities is between 7% to 9%, of which 2% to 3% is from capital gains and 5% to 6% is from dividends. So if you factor this into account, 10% seems fair; but you have to weigh the risk and return. Also, do you understand the business and its drivers? Is the time spent worth the effort compared to your expected return?
i think that is a fair answer. but if one spent a great deal of time n resource on a few stocks, then perhaps 10% isa low figure.
Although I'd like to agree with you on the 10% statement, especially in the light of easy money being made in the stock market from 2012 (STI +19.68% and +4%+ for 2013), the humbling experience in 2008 (STI -49.41%) and to a lesser extent 2011 (STI -17.04%) holds me back from making such a bold statement. My target remains at 6-8% per year (4-5% from dividend and the rest from Capital Gains). Any extra is a good bonus...
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