What would be a decent annualised compounded rate of return
Its Capital Fund has a compounded rate of return
from July 1984 through Sept.
Both examples have achieved a 5% simple average rate of return, but Investor A's portfolio has delivered a 5% compounded rate of return
, while Investor B realizes just a 2.4% compounded rate.
One of the main stated purposes of the partnership was to achieve a reasonable, compounded rate of return
on a long-term basis for its investments.
We describe one other rate of return, the continuously compounded rate of return
, denoted [delta].
* 2nd Golden rule: Buy shares at 50% discount or lower and sell at MRP provided it gives minimum 20% compounded rate of return
In fiscal 2007, for example, a 17.2 percent average rate of return resulted in an 8.6 percent average 10-year compounded rate of return
, according to the National Association of College and University Business Officers.
By the third quarter of 2005, Ujamaa's portfolio was worth $169,000, with a 13.78% compounded rate of return
over 12 years.
As reported by Ibbotson Associates in Stocks, Bonds, Bills, and Inflation 2004 Yearbook, the 1926-2003 nominal average annual compounded rate of return
for large-company stocks (S&P 500 Index) is 10.4% with a corresponding average annual inflation rate of 3%, suggesting an historical long-run real rate of return on equity in the U.S.
Little did they know that a conservative fund with a 10 percent compounded rate of return
could yield more than a fund with an average annual return of 25 percent.
A 10% compounded rate of return
is not the same as a 10% average rate of return, and the risk with variable life if you put in the minimum premium per illustration, barring some safety net to the contrary, is that you'll need to put in new dollars to cover the loads and expenses monthly," she said.
If the person could achieve just a 10% compounded rate of return
(approximately equal to the appreciation of the stock market over the last half century), then his or her one-time, $2,000 investment would reach $120,000 at age 65 and $194,000 at 70, a not inconsequential wealth level compared to what most retirees have.