From R100k to R100 million in 20 Years At 40% Growth Possible?

[Albert Broco]

All our stocks looks beautiful up until june 2015

Yep, around the time investors were warned of a potential credit rating downgrade. Funds started leaving the country back then, but the momentum increased since January this year as the first review came closer. Billions left the country already and stocks are not doing well. More are leaving every month as we approach December.

As with Brazil, when the junk rating comes, not a single share will survive. No hedging will work, nothing. You simply have to be out of the market if you are not prepared to suffer huge losses.

 

[Oopsie]

I'd be interest to know how you did this if you're willing to share.

Normally you's pay Income Tax/CGT on the profit on sale.

Were you still a SA resident when you sold the shares?

I sold when I was resident in Portugal and I have a 10 year tax exemption here. I held over 3 years so it was Capital gain and not Income.

 

[koeksGHT]

All our stocks looks beautiful up until june 2015

yeep, sold all profitable ones before they tanked.

 

[Verde]

As you've said, a 3% monthly portfolio growth is possible if you trade and you know what you are doing. I know the basics of trading, I'd like to try this 3% monthly growth or 40% annual growth and see how far I get a year from now. That's a challenge for me for now .

Edit: Garth Mackenzie, on his Traders Corner show on the Business Day TV channel, makes about 35% to 40% a year using R250k. He donates profits to charity though. If he can do it, so can retail traders provided they know what they are doing as you've said.

Warren Buffet is regarded as the most successful investor of all time, and he only achieved +-20% pa growth over more than 50 years.
Anyone who makes claims of 40%pa sustainable returns are talking nonsense.
Chasing this rate of return through trading means you will have to expose your capital to the risk of catastrophic loss over many years. The chances that this risk shows up at some point over 20 years is 90% +. The chances that you pull it off is less than 1 in a million.

 

[Verde]

I sold when I was resident in Portugal and I have a 10 year tax exemption here. I held over 3 years so it was Capital gain and not Income.

So did you emigrate before the stock took off. Emigration is a CGT event, so you would have been liable for CGT on the gains up to date of emigration. Or did you pull the wool over Sars's eyes - I know I would have.

 

[Oopsie]

So did you emigrate before the stock took off. Emigration is a CGT event, so you would have been liable for CGT on the gains up to date of emigration. Or did you pull the wool over Sars's eyes - I know I would have.

No. I left after it shot up. I consulted a chartered accountant that specializes in cross border tax matters and emigration and was told that I will not pay exit tax.
It has been 2 tax years and SARS has not notified me at all.

 

[Excalibur]

People who put some money in Capitec (even a few thousands) in the early 2000s and left it there have also made a phenomenal return.

 

[Sly21C]

My portfolio is up 2.65% this month.
I made 11 end of day trades this month (September):
- 3 winning trades
- 5 losing trades
- 3 open trades (i.e. shares that were bought but not sold yet)

FYI: Trading is not easy...

 

[Papsak]

My portfolio is up 2.65% this month.
I made 11 end of day trades this month (September):
- 3 winning trades
- 5 losing trades
- 3 open trades (i.e. shares that were bought but not sold yet)

FYI: Trading is not easy...

Nothing wrong with that. Guess you using CFDs? Going short and long?

 

[Sly21C]

Nothing wrong with that. Guess you using CFDs? Going short and long?

I used CFDs on 3 of the 11 trades, the rest I used normal shares. I only use CFDs if I wanna short a share.

 

[Thor]

I used CFDs on 3 of the 11 trades, the rest I used normal shares. I only use CFDs if I wanna short a share.

What broker do you use?

 

[Sly21C]

What broker do you use?

Standard Bank OST

 

[Thor]

Standard Bank OST

Ahh nice!

 

[Sly21C]

Ahh nice!

Standard Bank OST charts, although not sophisticated, are good enough for now. I'll invest in proper software if my trading skills improve and my portfolio takes off.

What broker do you use? Do you trade or invest?

 

[Thor]

Standard Bank OST charts, although not sophisticated, are good enough for now. I'll invest in proper software if my trading skills improve and my portfolio takes off.

What broker do you use? Do you trade or invest?

Ost is solid.

I used IG markets for years and then realised ahhh we don't have to shafted and now use GT247

 

[Sly21C]

My portfolio is down 2.98% this month.
I made 7 end of day trades this month (October):
- 1 winning trade
- 2 losing trades
- 4 open trades (i.e. shares that were bought but not sold yet)

FYI: Trading is emotionally draining....

 

[Papsak]

I am flat for the month on the trading side. That said, have also started doing one "trade" a time on my absa portfolio - R50K a time - will give it a year - would want to clear around R7K or so. R800 for the first month. the reason being with GT some of the smaller caps are not available. In Alexander at the moment - in at 2016 - looking for 2066 on 8100.

Overall though - down 0.7%

 

[Hamster]

FYI: Trading is emotionally draining....

So is investing in ETFs on an easy access platform like EE

I'd HATE to be a full-time trader. Life's too short.

 

[supersunbird]

The OP is about an investment, why did it devolve into talking about trading?

 

[Papsak]

The OP is about an investment, why did it devolve into talking about trading?

to get 40% a year a think you pretty much have to trade - not day trading but swing trading. Also think you probably would need the market to be trending, not stuck in a range as it is at the moment. But many people have done 40%+ a year for multiple years (audited) - read Market Wizards.

Rand x should probably also come into play - no big thing getting 40% when the rand goes from R10 to R14 in a year