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

[supersunbird]

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

But the OP article was about an investment, not trading, no one would be buying and selling just PSG shares (at whatever interval)

 

[Papsak]

whatever

 

[Sly21C]

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

The thread is about achieving 40% portfolio growth annually, either by trading or investing ....... I think . There won't be a PSG anytime soon, hence trying our luck in trading different companies to achieve 40%.

 

[patrick]

I think we might be missing a key and actionable point in the article. Basically by wanting something very luxurious he's lost a fortune.

Now while everyone seems to be focusing on the massive returns he's lost, I think they're overlooking the fact that if he'd simply gotten the JSE average of 16.7% he would have had R6.5 million today.

He also speaks about a number of very wealthy people in Stellenbosch going to AGMs looking like they popped out to the shops. This mirrors the findings in a fantastic book called the Millionaire next door.

My moral from the story is that you can either appear wealthy or you can put your money to work and be wealthy, though maybe not appear so.

 

[Kobus Niemand]

In 40 years, the purchasing power of R100 000 will probably be worth less than 10 million
thats inflation...
holding onto long term, market related assets will burn you badly in the next financial crisis, you could lose it all if you trust the banks
[video]https://www.peakprosperity.com/video/85831/playlist/92161/crash-course-chapter-6-what-money[/video]

 

[supersunbird]

In 40 years, the purchasing power of R100 million will probably be worth less than 10 million today
thats inflation...
holding onto long term, market related assets will burn you badly in the next financial crisis, you could lose it all if you trust the banks
[video]https://www.peakprosperity.com/video/85831/playlist/92161/crash-course-chapter-6-what-money[/video]

Fixed that for you.

Yes, just like R100 000 was a lot of money back then, now it can't even buy you the cheapest new car. But if you kept that R100 million invested it could likely be over R10 billion in 40 years (if the whole thing hasn't collapsed by then)...

 

[Sly21C]

But the OP article was about an investment, not trading, no one would be buying and selling just PSG shares (at whatever interval)

You're correct, the article is about investing and I almost derailed it by talking about trading. I've edited and fixed the OP to only focus on investing