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 What's the best strategy to making money in the stock market?
1. I do mean a lot a money....


 Indian stock market?
Is it a good time to enter the Indian stock market, considering that its been going down for the last 3 months? I was considering entering the market by buying HDFC bank, Bharti Airtel, Power Grid ...


 Investing!!!?
So im 18 and I have saved up some money over like the past month..like 650 dollars...I hear alot about investing and stocks..things like that...what is it about??? how do i get invovled? and what do I...


 Should I invest in Iraq?
I want to invest $5000 USD. I've heard that Iraqs oil production is going to increase in the next few years by alot, and now would be a good time to invest in the Iraqi Dinar. I have never ...


 How u can predict , which share is going to rise in few weeks?
...


 Forex curency dealing best automated seastem?
what is the best automated seastem fo curency trading?...


 Tips for New Forex Traders?
I'm new to The Forex. Ive read books and have been practicing with
paper accounts for a while. I'm ready to jump in, but I'm kind of
nervous. Does anyone have tips for ...


 I got a mail of winning notification of uk national lottery sweepstake.is it legal or a fraud?
i have a scanned copy of my winning certificate and they ask me for courier cost of my winning cheque.this is handeled by mailpost courier service uk....


 If you get laid off can the company hold your 401k acct if you want to roll it over?
...


 Which is a better investment choice Real estate or Stock Market?
chose one and ...


 Which stock trading account offers reliable online trading and has less brokerage?

Additional Details
Anu alternatives to icici direct account? I found icici direct reliable but the brokerage is very high....


 Is it a good idea to invest in mutual funds, specifically total stock market index funds?
with all the talk on the news about a possible recession i dont know if its a good idea to invest in mutual funds....


 I would like to invest money so please help me how to do it?
I would like to invest money every month so i don't know what to do or go, should i open a new account or i can invest on the same one that i have?...


 Which mutual fund schame in india is giving high dividends right now? which one is having a nicefuture?invest?
please help
Additional Details
whether dividends are given by any fund right now? that i can get immediately along with the ...


 What does the net worth of a person indicate?
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 Things to invest in?
I just read Rich Dad Poor Dad and was wondering, besides real estate, and stocks and bonds, what assets could I invest in with small sums of $$$ like just a few hundred dollars or so?...


 Is GE stock a good stock to hold onto?
...


 I want to invest.. What are some good stocks to invest right now?
suppose i have 1000000 $ and i have to use 1/3 of them by next friday.. but eventually i will be using all the money...but in the end i have to have more money then with i started... of course thats ...


 Why would anyone pay a planner when most just recommend Mutual Funds?
With some research anyone can pick a decent Mutual Fund.....Why pay an extra fee for someone to hold your hand?...


 If u are making $50,000 a year wat are u usually making per hour?
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laxdevil21
I got 50,000 dollars and want my money to double every 3-4 years any ideas where i may get that ?
                     
 




Mike K.
You'll need a compound annual return between 19% and 24% (after taxes if it's not in a tax deferred account) to double your money in three to four years. To get that kind of return you'll have to expose your capital to considerable risk. Someone else suggested CGM focus, which has delivered high returns in the past, albeit at a high level of risk. But that would be an undiversified investment, which is especially risky.

If you have a lot more money invested in a well-diversified portfolio, the risk of making a concentrated investment would be tempered by your other investments. However, if $50,000 is all or most of the money you have to invest, you'd be taking a big risk by making a concentrated investment.

Nothing is guaranteed in investing. The closest you'll come is US Treasury three month T-bills, which are virtually free of default risk and carry a minuscule inflation risk premium, which is why they are used as a proxy for the theoretical risk-free rate of return, the rate that forms the baseline from which all other investments are measured. Risky investments are expected to have long-term average returns in excess of the risk-free rate. The greater the risk, the higher the expected return. That's what's expected in the long-term; nobody knows what will happen in the short-term, and three to four years is short-term.

If you use historical returns and standard deviation of returns to project future performance, as a rule of thumb there is a 68% probability that your realized return in any given year will be within two standard deviations of the average, i.e., the average +/-2 standard deviations. So a fund with an average return of 26% and a standard deviation of 29% would be expected to return between -23% and +87% in any given year. +/-3 standard deviations takes you up to a 99.74% probabilty. The only problem with this scenario is that although past volatility is a good predictor of future volatility, past returns are not a good predictor of future returns, but that's all that most of us have to work with.

The bottom line is that you're really rolling the dice when you try to wring high returns out of a short-term investment. You should probably set your sights lower and put the money in a well-diversified set of securities (mutual funds or stocks and bonds) unless you already have a few hundred thousand in a well-diversified portfolio and the $50K is "mad money" that you can afford to risk.

I'm afraid I couldn't provide a short answer to this one.

P.S.

Berkshire Hathaway (Warren Buffett's company) had an average annual return of 18.8% with a standard deviation of 20.9% for the period 1990 - 2006 and the average includes some losing years.

Also, Warren Buffett is a long-term investor. He's willing to wait many years for an investment to reach its intrinsic value. And Berkshire Hathaway's holdings are very well diversified. Although their investments may be concentrated, the mix is well-concieved and the investments are complementary, thus providing excellent diversification.

Warren Buffett is not a gambler and he's a very patient man.


moglie
Rating
fantasyland? Right now at least. Historic average for long term investment in the US is around 10-12%. Assuming no market pitfalls you might be able to double your investment in 6 years.


maikerukun
Rating
By getting into something illegal like cockfighting. (Rooster fighting if you wanna get low like that.)


richard t
Rating
High risk.high reward..........
try commodities....................


Monkey
Rating
Think of a need for everyone. Make a soild bussiness plan.(Do you market research, learn the industry) Start you own bussiness and work hard to make it grow. (Not a fool proof plan)


dave c
Rating
No I think its not fantasy land! lol if i had to wait 6 year to double my money that would be crazy Let the masses settle for that garbage.
In order to get higher returns you need to roll up your sleeves and do a investment thats not passive. For example during this last real estate boom I often flipped homes. I would buy a home for 30k and put 10k into it and 90 days later flip it for 60k. If you do that you can easily double your money.
Now that the housing bubble has burst I had heavy cash from profits and did not get caught like many builders and investors did cause I had no debt and only did a couple projects at a time. Now I am buying rentals for 50% on the dollar or less from banks desperate to get rid of there junk. I am buying 60k duplexes for 10k and put 5k into them and rent em out for 1000 a month rent. Again thats over 50% return on my money. If you want high returns you must pick a business or investment and then get active.
If you want just to be passive handing your money to the stock market can work too but you lose control. Your only control here is research.
The understanding of the market is key while you cannot be an exact timer to the market you can understand things like the business cycle and interest rates and capital in relation to markets so you can be ready when the next cycle begins to move upward or down ward. I was flipping one house every 60 days during the boom making 25k on average. when the boom stopped and busted i was only stuck in one project that was finished and paid for in cash. My returns were astronomical. Every time I did a deal I made at least 30% on my money. I operated with cash and never borrowed making all my profits mine not the bankers. Then when the boom busted and I was sitting on 500k all cash after I paid taxes I was able to hammer out some income property because there were not buyer in the market any longer. Again turning my 500k cash into 1 mil equity by buying on the down turn of the market I had once again achieved great returns. how ever going forward i am stuck with income for at least the next 5 years which is fine. I will wait 5 to 10 year and evaluate whats happens next in the market.
Real estate is my field of study you should find a field you plan to invest in. The idiots out there say be diverse but the millionaires will tell you become a master at what you do and put all the eggs in that basket and watch it real close.
4 years is a long time getting 20% or 25% on your money shouldn't be all that difficult. You could be a hard money lender thats pretty passive, or a real estate investor.
Other things you can do are out there. Warren Buffets investing philosophy is he buys when the bears are giving them away. He means he buys value! when the market has hammered a sector thast the time to buy!
Right now housing sector and building stocks like home depo and lowes as well as the financial sectors like banks er in bad shape! Knowing with of these will survive then buying some would probably be a good long term pay off. But be careful with stock markets again you have zero control.
Personally i like to manage my investments cause i dont have to worry about getting ripped off since i can see right where my money is! Good luck stealing my bricks and mortor.
Another play i made 4 years ago was gold and silver bullion it did little or nothing 1st years i had it. It grew maybe 7% a year but last 2 years its been growing at the rate of 45%. I turned 10k into 50k. I had more silver then gold.
Gold and silver is in a bull market right now. that bull is at least 50% of the way though in my opinion but who knows maybe its peaking already. That being said its a good idea to have 5% of the portfolio in precious metals to protect yourself against inflation and currency problems. Our dollar has tanked against other currencies last several years due to over spending and defecits.
Another thing thats interesting is currency trading after you have a firm grasp of economics and finance poeple have made great fortunes in trade of currency. Study goerge soros he made almost a billion dollars by shorting the british pound. I bet poeple are making money shorting the dollar as well right now. Just some ideas to make you think about some areas to study before you put your money out there.


Chuck P
Rating
Try CGM Focus fund, theu are one of the good ones.


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