Boiler Room: The Official Stock Market Discussion

Mirin4rmfar

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You can't have been in the market that long if you're seeing the returns over the last several years and gassed to think that averaging a 20% return rate long term is doable. I'll admit that if he points out a company and I like it I'll invest in it but I'm not just copying the guy's moves. Fundamentally I'm a dividend investor and he's not. If you're just looking to go on auto-pilot and let someone else do all the work and just copy moves this is probably gonna blow up in your face. When shyt hits the fan if you're just copying moves and don't have conviction in the company you're gonna end up bailing.

What is the average return one should expect realistically year to year?
 

dora_da_destroyer

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What is the average return one should expect realistically year to year?
Year to year varies but over 5+ years, especially getting into the 10+ territory, if you have 12-25% gains, you’re good. People don’t reiterate enough we’ve been in a 10/11 yr bull market. Go look at the index charts from 00-12 and you’ll see just how long it would’ve taken to get back to 00 levels. We’re lucky right now but there is some level of caution to be had
 

Reign X

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Whats a good price to buy ttcf at :patrice:

I want to wait till it gets around 22-23 :patrice:

depends, do you really believe in it and will hold for years? if you really believe in it, the difference between 22 and 25 doesn’t matter much if you see it hitting 50+.

you can wait for it to hit 22 or 23 but also have to be willing to miss it if it never goes down to that. I wanted lmnd at 40, and well look at it now.

For the discussion of realistic returns over a period of time. Cathie at ark said I think she expects her stocks to double every five years or go up 15% a year. Forget which one but 15-20% range basically over longterm, is the goal before selecting a stock. I think they meant for the bigger or medium positions.
 
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Serious

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You can't have been in the market that long if you're seeing the returns over the last several years and gassed to think that averaging a 20% return rate long term is doable. I'll admit that if he points out a company and I like it I'll invest in it but I'm not just copying the guy's moves. Fundamentally I'm a dividend investor and he's not. If you're just looking to go on auto-pilot and let someone else do all the work and just copy moves this is probably gonna blow up in your face. When shyt hits the fan if you're just copying moves and don't have conviction in the company you're gonna end up bailing.
For this reason I think the best defense mechanism is pick great companies.

Stock price isn't always indicative of company performance we see this with companies like apple, amazon, fb and tesla.

That's why I think people should learn to develop good habits regarding how to play the stock market now, because it won't always be so easy as a series of stocks constantly going or copping expiring options a couple weeks before. There's eventually be a world hurt heading towards individuals who never learned the self discipline of buying and holding.
 

FabTrey

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Its unrealistic to say its easy to average 20% per year, EVERY year, for decades. You can do 20% per year for 5 years in a row, sure. But average that for 15+years in a row?
Remember that there are always boom and bust cycles. And if you get hit bad enough to literally go back down to 0, doesn't matter if you can go up 40% the next year because you're starting over from $0. So you better have enough stored up to survive a crash, but playing it that safe doesn't make it a "no brainer" to get 20% per year.

i wasn't even talking about 20% return every year. i was talking about 20% average in the span of 10, 20, 30, 40 years.

i returned nearly 200% this year. if i do lousy returns for next 5 years i probably still can average 20% in 5 years.

warren buffet didn't win 20% every year. he had his ups and downs. but over the 60+ year span his average was 20%.


and 20% AVERAGE is definitely achievable.

20%+ every year? now that's gonna be crazy hard.
 

FabTrey

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this was Apple's return every year
AAPL stock yearly return - TradingNinvestment

returned over 25% past 10 years.

to get 20% average, you can't be too diversified. you need several APPLs and couple of explosive growth stocks.


The current average annual return from 1923 (the year of the S&P’s inception) through 2016 is 12.25%.1,2 That’s a long look back, and most people aren’t interested in what happened in the market 80 years ago.

So let’s look at some numbers that are closer to home. From 1992 to 2016, the S&P’s average is 10.72%. From 1987 to 2016, it’s 11.66% In 2015, the market’s annual return was 1.31%. In 2014, it was 13.81%. In 2013, it was 32.43%. 3


that's s&p. so in order to do 20% average you have to beat the market convincingly.

like how TSLA investors are doing. like how APPL investors doing for past 15 years. AMZN investors.

if you pick a right stock long term 20% is achievable.
 
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