- Achieving 10% per years is pretty simple, just follow three rules.
- Many forget to include risk in the 10% expected return puzzle.
- However, if you do your homework, yearly dividend yields of above 60% shouldn’t be excluded. An example will be provided.
I always talk about how the S&P 500 is overvalued and how everybody should achieve returns of more than 10% per year.
In fact, I strongly believe that anyone is easily capable of achieving such returns. To achieve returns, say, in the higher teens, you’d need to be a very good investor or have someone telling you what stocks to buy and when. But that puts us in the Buffett, Soros, Klarman, and Dalio category, so we’ll stick with the easy today and discuss how to achieve returns of above 10% per year. More →