Investment Question:
I've heard some "market gurus" claim returns of up to 400% annually. Is this possible?
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To answer your question in a word: No! Although we wish such a phenomenal investment system were real, the claims you speak of are preposterous. Most "gurus" are nothing more than salespeople trying to push a product that, despite what they say, does not work.
Anyone promising annual returns of more than 400% is one of two things: dishonest or extremely dumb. If these people truly had such a great system, do you think they would waste their time trying to sell it for four measly payments of $24.99?
Let's do some quick math. Say you had this secret formula and invested $1,000 into it. If it returned 400% for five years in a row, you would have $1,024,000 (through the magic of compounding). Before long, you'd be on Forbes' billionaire list, along with true market guru Warren Buffett. Clearly, anyone with a foolproof system providing such astronomical returns would not need to put on seminars or sell books for what would be pocket change.
The truth is that many systems out there base their historical performance on backtesting. In other words, they test obscure strategies on historical data, and then use the theoretical returns in their marketing copy. Other swindlers trying to sell you something may report short-term gains as annualized gains. For example, they may have made 25% in a stock over four weeks which, sustained over a whole year, is an annualized gain of roughly 325%. But the chances of anyone being able to maintain 25% returns every four weeks over several years are pretty much nil.
Like anything we try to learn, investing doesn't work by cutting corners. Remember that the power of compounding is most effective over the long term. And, as the old saying goes, if something sounds too good to be true, chances are, it is.
http://www.investopedia.com/terms/t/tenbagger.asp
http://www.investopedia.com/ask/answers/04/030404.asp?viewed=1
Showing posts with label samgang. Show all posts
Showing posts with label samgang. Show all posts
Friday, 4 September 2009
Sunday, 5 July 2009
Sam using PE
Samgoss said...
2 steed, i stated there nett asset,my nett asset is actually nett current asset which equal 2 current asset minus current liabilities.
What caused negative asset ? tak lain tak bukan is bcos of borrowing , come 2 NTA, NTA is nett tangible asset , tangible means something u can count n touch, what about goodwill ? all these depends on what type of biz they r involving.
WHen I said Low PE , u shouldnt just rely on its last year eps, u must look at its latest eps oso, that giving u a guide to know how she is doing now !?
That's y I always stressed there d importance of " past earning track records ".
Uncle sam using PE , do u know how 2 relate PE with others ? not just Low PE , from PE ..past , current n future eps + track records, all these r essential elements 4 u 2 forecast its future eps as well as PE.
as i said, it looks simple , u understand it doesnt mean u know how 2 apply it , it is just like financial crisis, some will take it as disaster but some may take it as opportunity , it depends on how well u understand on PE.
Yes, I am a PE man , but i can tell u, from PE , i can link lots of cause n effect into my PE.
One more thing , different industry has different PE , u cant compare PE of resorts with PE of Rcecap or Kfima , cos one is bluechip n d other one is penny stock. hence.. u must know what is d average PE 4 that industry !
Avg PE 4 banking is ard 15 to 20 , avg PE 4 penny stock is ard 12+- , hence when PBBor MBB dropped to PE ard 10+- , it is time to sailang , but u cant apply this to penny stock, cos it is not very cheap 4 penny stocks @ PE ard 10+_.
but one thing 4 sure , stock that traded with PE > 20 is no longer cheap !
D above is like telling u yr mom is a female , but i can assure that not many of them know how 2 apply it on shares invst, like what i always said , y d length of our fingers r not d same ^_-
July 3, 2009 7:26 PM
https://www.blogger.com/comment.g?blogID=2900671137131972978&postID=269801610029410286
2 steed, i stated there nett asset,my nett asset is actually nett current asset which equal 2 current asset minus current liabilities.
What caused negative asset ? tak lain tak bukan is bcos of borrowing , come 2 NTA, NTA is nett tangible asset , tangible means something u can count n touch, what about goodwill ? all these depends on what type of biz they r involving.
WHen I said Low PE , u shouldnt just rely on its last year eps, u must look at its latest eps oso, that giving u a guide to know how she is doing now !?
That's y I always stressed there d importance of " past earning track records ".
Uncle sam using PE , do u know how 2 relate PE with others ? not just Low PE , from PE ..past , current n future eps + track records, all these r essential elements 4 u 2 forecast its future eps as well as PE.
as i said, it looks simple , u understand it doesnt mean u know how 2 apply it , it is just like financial crisis, some will take it as disaster but some may take it as opportunity , it depends on how well u understand on PE.
Yes, I am a PE man , but i can tell u, from PE , i can link lots of cause n effect into my PE.
One more thing , different industry has different PE , u cant compare PE of resorts with PE of Rcecap or Kfima , cos one is bluechip n d other one is penny stock. hence.. u must know what is d average PE 4 that industry !
Avg PE 4 banking is ard 15 to 20 , avg PE 4 penny stock is ard 12+- , hence when PBBor MBB dropped to PE ard 10+- , it is time to sailang , but u cant apply this to penny stock, cos it is not very cheap 4 penny stocks @ PE ard 10+_.
but one thing 4 sure , stock that traded with PE > 20 is no longer cheap !
D above is like telling u yr mom is a female , but i can assure that not many of them know how 2 apply it on shares invst, like what i always said , y d length of our fingers r not d same ^_-
July 3, 2009 7:26 PM
https://www.blogger.com/comment.g?blogID=2900671137131972978&postID=269801610029410286
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