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What can make money?

What can make money?

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Temperament Offline
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#1
27-04-2013, 12:09 PM
i had attended a brokerage sponsored investment talk last night. And may i post one of the option suggested by the lecturer.

Option A:

no need education
just buy a single instrument and hold for 30 years
don't even need to follow up
around 8% compounded growth rate return per annum

Hi ValueBuddies, what do you all think?
Is it possible or feasible?
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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Musicwhiz Offline
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#2
27-04-2013, 12:17 PM
My view is that it is usually extremely risky to let others do the thinking on your behalf.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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Muck Offline
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#3
27-04-2013, 12:19 PM
(27-04-2013, 12:09 PM)Temperament Wrote: i had attended a brokerage sponsored investment talk last night. And may i post one of the option suggested by the lecturer.

Option A:

no need education
just buy a single instrument and hold for 30 years
don't even need to follow up
around 8% compounded growth rate return per annum

Hi ValueBuddies, what do you all think?
Is it possible or feasible?

On the surface of it without further details, I find it hardly plausible. What is this high yielding "instrument" did the lecturer say? For such a wonderful long term instrument that doubles the capital every nine years without need to monitor, the insurance companies should be falling over each other trying to get a bite of it, let alone allow this to reach retail investors. Smile
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rogerwilco Offline
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#4
27-04-2013, 12:26 PM
I think we need much more detail. What kind of instrument? Who offers the instrument? How does it produce the 8% return? Why 30 years?
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Temperament Offline
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#5
27-04-2013, 01:33 PM
According to him, it is S&P 500. No backing up by historical statistics though. Can someone (with higher IQ) dig up S&P 500 historical statistics of return accordingly, to prove his option true or not?
i think if it's true, then why am i investing in SGX?
Thanks.TongueBig Grin
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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kayhian Offline
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#6
27-04-2013, 01:42 PM
buy at market 30-year low and hold for 30 years with all dividend reinvested at 52-week low?

but working adults can only have 2 30-year investment time frames.
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valuenewb Offline
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#7
27-04-2013, 02:13 PM
Here you go... Not sure about its authenticity...


www.dqydj.net/sp-500-return-calculator
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rogerwilco Offline
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#8
27-04-2013, 02:30 PM
(27-04-2013, 01:33 PM)Temperament Wrote: According to him, it is S&P 500. No backing up by historical statistics though. Can someone (with higher IQ) dig up S&P 500 historical statistics of return accordingly, to prove his option true or not?
i think if it's true, then why am i investing in SGX?
Thanks.TongueBig Grin

Temperament, why don't you see yourself at this wikipedia link or this Yahoo Finance link

From wikipedia, CAGR from 1970 to 2012 is 9.94%
From Yahoo Finance, from 1950 to 2013 S&P 500 returns 9051.19%, so CAGR is 7.43%

you can actually buy S&P 500 ETF directly from your US stock broker
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sunrocker Offline
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#9
27-04-2013, 02:30 PM
How about the STI ETF? Thought its not 30 years long yet but still did a good run since inception.

http://www.spdrs.com.sg/etf/fund/fund_detail_STTF.html#
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rogerwilco Offline
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#10
27-04-2013, 02:43 PM
in the end, the question is again not whether you should or should not invest in individual stock, STI ETF, S&P 500 ETF, REIT, government bonds, corporate bonds, or whatever but

which type of investment best suite your temperament?

(of course you have to do due diligence as best as you can beforehand)
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