I don’t want to be a day trader. I don’t want to buy securities with the expectation of selling them a month or 2 later. I’m seeking 15% annual returns over 5 to 10 years. Is that unreasonable?
What online brokerage is best? And what’s the best research site out there?
I like Yahoo Finance. I also like Morningstar. I also really like TheStreet.com
Chosen Answer:
Hi,
That is a great question, and I will attempt to answer it in an unbiased way.
There are two main types of investing philosophies, value and growth investing.
Warren Buffett has typically been put in the value investing side. You attempt to buy established companies that possess durable advantages over their customers such as brand (Think of Coke).
There is another type of investing called growth investing, and investors in this group try to buy companies that are growing either faster than average, or have consistent above-average growth (Think Google).
10-15% is higher than the average returns forecasted for the future. Many believe the major stock indicies will return about 6-10%. This can be easily obtained by buying an ETF (exchange traded fund) that tracks these indices.
However, Morningstar is probably the best service to use. They are predominantly value based reseachers. You should subscribe to their premium service, and they will be able to guide you very easily into a portfolio of undervalued securities. I believe that this service will allow you to earn returns in the 10-15% range, but no guarantees.
Morningstar’s philosophy is based exclusively off of Warren Buffett’s, so you’re in good company.
by: Andrew M
on: 9th June 07
Mutual funds? Vanguard and Strong etc.
Nothing in life is for certain. 15% is not unreasonable. (optimistic yes.) 5-10 years. Well, you do realize that in few years the Democrats will take over. It’s not a matter of which is better for the economy etc. but it’s the uncertainty in general that makes people sell their stocks. They sell, price/value goes down. Axiety = sell, uncertainty = sell, fear = sell. So, personally; I’d recommend buying Mutual funds instead so that they’d take care of your investments for you. (to a certain degree…)
Just buy the Vice Fund (NASDAQ:VICEX) and you will get those returns.
Hi,
That is a great question, and I will attempt to answer it in an unbiased way.
There are two main types of investing philosophies, value and growth investing.
Warren Buffett has typically been put in the value investing side. You attempt to buy established companies that possess durable advantages over their customers such as brand (Think of Coke).
There is another type of investing called growth investing, and investors in this group try to buy companies that are growing either faster than average, or have consistent above-average growth (Think Google).
10-15% is higher than the average returns forecasted for the future. Many believe the major stock indicies will return about 6-10%. This can be easily obtained by buying an ETF (exchange traded fund) that tracks these indices.
However, Morningstar is probably the best service to use. They are predominantly value based reseachers. You should subscribe to their premium service, and they will be able to guide you very easily into a portfolio of undervalued securities. I believe that this service will allow you to earn returns in the 10-15% range, but no guarantees.
Morningstar’s philosophy is based exclusively off of Warren Buffett’s, so you’re in good company.
Motley Fool is the first place for you to begin.
Hi, here is a collection of informative articles about investing. a free online investing tutorial for you.
http://www.investingtutorial.info/
good luck !
wish you make fortune from investing !
Anthony Robbins used to advocate a system called OPA (Outcome Focused, Purpose Driven, Action Plan) to help you reach your goals. The name was later changed to RPM.
Anyway what that meant was you first of all had an Outcome (Let us say that your outcome is to grow $10,000 into $5Million over the next 15-20 years)
Purpose Driven. This is what will make you strive towards your goal, taking all actions, and not getting discouraged. (This is the dream. What will you do when/if you had $5M. This is what will kick start your massive action plan, this is what will give you the energy, the stamina, the belief that it is all worth while)
Finally, the massive action plan. What it will take for you to reach your goal, your $5M.
Having studied many investment funds, read books, and followed the financial press, you will rarely find anyone (who has a proven track record) that will tell you exactly what stocks to buy, when to buy them, and more importantly when to sell them.
Most Mutual funds fail to beat the market average, so even if you chose Mutual Funds, there is no guarantee of success.
So what can you do? What is the best way to reach your goal of $5M balancing the amount of risk you are willing to take against the chances of reaching your goal within the next 15-20 years?
Unless you have a crystal ball, all investment systems will lose money some of the time, but a really good system will always have more ‘UP’ months than ‘Down’ months, and the ‘UP’ months will return more than the down months will lose.
The one system that I have seen, that has a past record, is achievable, and more importantly is easy to understand is the Stocks Monthly system.