MASTER Investers ThIs Is For YOU.?

Question

Who knows the best way to invest 1,400 a month for five years? How much do you think I can accumulate from your strategy after 5 years.

Answer 1

Warren Buffet's portfolio makes about 18% a year. NOT BAD. You can coatail his investmens and do pretty good. Here is the result at 18%

Year Balance

1 18,257.7

2 40,086.93

3 66,186.36

4 97,391.31

5 1347,00.51

Final Savings Balance:$ 134,700.51

Its the beautiful magic of compounding....The greatest story NEVER told.

Answer 2

Well, looking at my trailing five year return, $144,835.85, excluding tax effects. At the discount rate I use as my forward rate, only $112,345.79. Although my forward rate is 11% I expect to do better. For example, if you look at one of my holdings, IndyMac Bank, assuming it earns no money for the next twelve months and earns and ordinary return and is sold at an ordinary price in five years, I should return slightly more than 29% on that position. I discount it at 11% and see what has to happen for that to occur. A forward 3.4% return on equity by IndyMac bank and an 8 times earnings forward multiple would be required. It would be extraordinarily difficult for IndyMac to make that low of a return, so my 11% is reasonably safe. Even with the expected 68 cents per share loss in 2008 the return only falls to 28%.

Read, "The Intelligent Investor," by Benjamin Graham. You will do well for yourself if you can do it. You should be able to pick it up at any Barnes and Nobles, copyright 1972 and still in print.

Answer 3

You might want to follow what the best investors are buying and selling at http://www.top10traders.com - this is a free site - each month the site ranks the best performing investors. Good luck.