Wednesday, July 17, 2013

Target 30% return every year for the next 3 years

1. Market return @ 10%. Generally, stock market return is 10% every year (based on FBMKLCI total return in the past 5 years).
2. But I target 30%. However, I believe that through good stock picking, it is possible to achieve 30% annual return in the stock market.
3. Start with RM10,000. Since I am not rich, let's build a small portfolio and test whether my strategy works.
4. 1st trade: BUY 14,000 YOCB @ RM0.695. By doing this simulation trading, now my portfolio is RM9730 in YOCB shares, RM270 cash. Reasons why I find this stock attractive will be covered in another post.
5. Grow to RM13,000 by 30-Jun-2014. Since now is 17-July-2013, let's make it simple for next year target at 30-Jun-2014.
6. Final target RM21970 by 30-Jun-2016. The 30% is compounded over 3 years, so the final target is RM21970.
7. Assumptions: 
i) Brokerage commission is excluded as this is only paper portfolio.
ii) Dividend will be included in this portfolio.

No comments:

Post a Comment