nothing is a more powerful wealth building tool than
compounding high rates of return on an annual basis over a prolonged period of time.
Remember, nothing is a more powerful wealth building tool than
compounding high rates of return on an annual basis over a prolonged period of time.
Not exact matches
By giving your money more time to
compound and keeping your
rate of return as
high as possible, you greatly increase your chances
of reaching a seven - figure net worth,» writes Brian Feroldi on The Motley Fool.
Over time, the cumulative
return grows even more as the benefit
of higher rates compound.
And in every value asset class the
compound rate of return was
higher than Berkshire Hathaway.
The
higher the
compound annual
rate of return, or the greater the number
of years to retirement, the more dramatic the effect that an early start will have on the ending wealth.
Your money will be invested for a longer period
of time and is likely to earn a
higher rate of return than a savings account, maximizing the benefit
of compounding.
«on page 144, O'Shaughnessy prints tables showing the
Compound Annual
Rates of Return by Decade for the strategies
of High & Low Price to Earnings,
High & Low Price to Book,
High & Low Price to Cash Flow,
High & Low Price to Sales, and
High Yield.
Speaking
of savings
rate, have you checked out my recent post where I mathematically prove the importance
of your savings
rate as a
higher priority than the
compound return?
Speaking
of savings
rate, have you checked out my post where I mathematically prove the importance
of your savings
rate as a
higher priority than your
compound return?
I also believe that quantitative value investing — while it will provide you with good long - terms
returns — will probably not allow you to
compound at very
high rates of return (unless you add portfolio leverage).
Speaking
of savings
rate, have you checked out my post where I mathematically prove the importance
of your savings
rate as a
higher priority in achieving financial independence than your
compound return?
Typically, the faster growing stocks will offer a lower current yield but obviously a faster
rate of compounding and, therefore, a greater potential for a
higher total
return.
One mistake was that, by focusing on cigar butts selling for low single - digit multiple
of earnings or a low price in relation to liquidation value, I missed out buying into
higher - quality businesses like Asian Paints and Pidilite, which
compounded capital at
high rates of return for a long time.
Starting on December 31, 1954 (we need five years
of data to compute the
compound five - year earnings growth
rate), $ 10,000 invested in the 50 stocks from the All Stocks universe with the
highest five - year
compound earnings - per - share growth
rates grew to $ 1,287,685 by the end
of 2003, a
compound return of 10.42 percent (Table 12 - 1).
The idea
of a real competitive advantage — or «moat» — suggests that at worst the companies will grow with the economy and at best will continue to
compound returns at a
rate higher than their peers.
Since 1951 the
high dividend yield value decile has generated a
compound annual growth
rate (CAGR)
of 11.4 percent and an average annual
return (AAR)
of 13.6 percent.
He said he had $ 174K and needed $ 12k for annual living expenses, so he was basically financially free at 26, because his $ 174K would easily
compound at
rates of return much
higher than the $ 12K he needed to take for bills.
This approach allows true
compounding policy growth
of your cash account and an ever increasing death benefit in addition to the
rate of return generated by your
higher risk -
return investments.
This approach allows true
compounding policy growth
of your cash account and an ever increasing death benefit in addition to the
rate of return generated by your
higher risk -
return investments.
Compounding money at
high rates of tax - free
return is a definite advantage
of real estate, especially with a great tax plan.