http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations Realistic Stock Investment Expectations If you are investing in stocks in order to get a better return over the years than rolling over CDs at your bank you have realistic investment expectations. If you are hoping that your stock investments will put you on Forbes billionaire list you are mistaken. This article has to do with realistic stock investment expectations. In support of this thesis, Market Watch says that investing in stocks will never make you a billionaire. The article starts with the most recent Forbes list of American billionaires. And it looks at the best likely returns on investment by expert investors. What is realistically attainable in the stock market? Buffett is widely regarded to have the best long-term performance of any investor alive today, and over the past 30 years the book value of his company, Berkshire Hathaway BRK.A, +0.30% has grown at a 17.7% annualized rate. Impressive as that is, it’s not nearly high enough to enable you to make it on to the Forbes list – unless you start with a lot of money at the outset. The threshold to make it on to this year’s list, for example, is $1.7 billion. Let’s say your net worth by the age of 30 is $1 million. A 17.7% annualized return from then until age 65 would produce “only” $300 million. More importantly realistic investment expectations are that you will match the average equity fund with a roughly 8% per year growth rate. That will grow your million dollars to fifteen million from age 30 to age 65. Billionaires invest in stocks in order to maintain the purchasing power of what they have earned by founding a company, growing it and taking a public!

1. REALISTIC STOCK INVESTMENT
EXPECTATIONS
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
If you are investing in stocks in order
to get a better return over the years
than rolling over CDs at your bank
you have realistic investment
expectations.

3. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
If you are hoping that your stock
investments will put you on Forbes
billionaire list you are mistaken.

4. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
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5. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
This article has to do with realistic
stock investment expectations.

6. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
In support of this thesis, Market
Watchsays that investing in stocks
will never make you a billionaire.

7. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
The article starts with the most
recent Forbes list of American
billionaires.

8. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
And it looks at the best likely returns
on investment by expert investors.

9. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
What is realistically attainable in the
stock market?

10. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Buffett is widely regarded to have the
best long-term performance of any
investor alive today

11. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
And over the past 30 years the book
value of his company, Berkshire
Hathaway BRK.A, +0.30% has
grown at a 17.7% annualized rate.

12. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Impressive as that is, it’s not nearly
high enough to enable you to make it
on to the Forbes list – unless you
start with a lot of money at the
outset.

13. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
The threshold to make it on to this
year’s list, for example, is $1.7
billion.

14. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Let’s say your net worth by the age
of 30 is $1 million.

15. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
A 17.7% annualized return from then
until age 65 would produce “only”
$300 million.

16. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
More importantly realistic investment
expectations are that you will match
the average equity fund with a
roughly 8% per year growth rate.

17. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
That will grow your million dollars to
fifteen million from age 30 to age 65.

18. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Billionaires invest in stocks in order
to maintain the purchasing power of
what they have earned by founding a
company, growing it and taking a
public!

19. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Expectations and Risk

20. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Common wisdom is that you can
accept more risk in your investments
when you are young because you
have time to make up for your losses
whereas you should avoid risk as
you approach retirement.

21. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
The Motley Fool looks at investment
risk.

22. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Before you can invest responsibly,
it’s important to take a long look at
your risk tolerance — that is, how
much volatility are you willing to deal
with in the pursuit of investment
gains?

23. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
I wish there was a simple answer to
this question, but risk tolerance
depends on a variety of factors,
including your age, your personality,
and why you’re investing.

24. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Traditionally risk adverse investors
buy bonds but in today’s low interest
rate environment you can lose a lot
of money investing in bonds just
before rates go up.

25. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Realistic Expectations from
the Start

26. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Years ago we wrote about learning
how to invest.

27. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
A beginning investor needs to think
of having a stable platform from
which to invest.

28. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Simply speaking this means paying
off credit card debt and having
sufficient cash reserves for mortgage
payments, food, utilities, and other
needs sufficient for several months.

29. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Realistic investment expectations
need to include the possibility of
substantial losses in the event of a
major market crash, war or social
unrest.

30. http://profitableinvestingtips.com/stock-investing/realistic-stock-investment-expectations
Having your bills paid off and money
in the bank for a few months of
expenses is the point from which to
start investing.