Just For Thinking ....
Read? Knowledge versus Competence
How to raise competency level?
If we continue to be happy with low expectancy e.g. 4-5% ROC even after years of investing in the stock market. Are we be able to raise our competency level with such low expectancy?
I like to think that it will be hard. Right?
To raise competency level, we will have to continuously challenge ourselves by setting higher progressive investing goals. In this way, we may be able to identify any competency gaps when we are unable to meet progressive higher investing goals. But, we must also be realistic that we may not have the necessary skill sets to fill up all these gaps and continuously learning and changes in this journey is a must.
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A Systematic Approach: How Dimensional’s Global Targeted Value Selects
Stocks
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The Dimensional Global Targeted Value is one of the funds that are
available for investment if you have an adviser that can recommend
Dimensional funds. ...
1 hour ago
Hi Cw8,
ReplyDeleteI would think that one needs to have varying levels of expectation depending on the market.
If you are achieving 4-5% ROC, in a market which is choppy, and essentially flat or down then you are doing exceedingly well.
If however, you are doing 4-5% in a year like 2009 where everything was going up in a straight line, then you are doing very badly.
Just my two cents worth.
Cheers
V
4-5% is a good long term returns. Even big fund managers aim for that type of returns.
ReplyDeleteHigher than that, it would be better to run an actual business (rather than invest in shares of one) - higher risks but definitely better returns on investments.