I was thinking about this recently. By the time it had achieved a cagr of 5,10 or 15%,.perhaps 10yrs have elapsed.
Especially for long time investors, looking back at their record, already a good ten yrs has passed and they are 10yrs older. Time cannot be reversed.
Whether they have done not so well and decuded that they have the ability to do better or whatever it is, they have ten yrs less now.
10yrs might tell whether one's strategy is successful since it wld have covered at least 1 crisis.
A few years of investing is hard to tell since one be just be lucky to buying post crisis.
Well, its a problem long term investor cannot run away right?
Might be 10k invested in 2014 say, 2024 this doubles as an eg.
ReplyDeleteSo its abt 7% cagr.
By then one will be 10yrs older. Right or wrong way good or can be better way, one will be 10years older.
some investors just swear by long term investing strategy without considering his or her current age.
ReplyDeleteassuming l am a 60 years old investor :-
if l can still see tomorrow then l am blessed for another baby step day towards my remaining days of my long term investing periods of 5, 10 years etc
what if l can lived only into the 3rd year then the long term investing strategy is a futile journey from the start; unless l intended to hand it down to a 'willing' next generation to continue adopting the long term investing journey.
Thats a very valid view point.
DeleteSo age and handing over taking over becomes a consideration at some point in time, esp when one's portfolio becomes larger.
It might be problematic n a real dilemma when one is 80 with 10mil n dunno who to hand over. ? Charity
like in the case of the gerald crescent 40m bungalow widow.
words of wisdom from the experienced and learned.
ReplyDeletethanks!