20% Returns

Discussion in 'Investor Psychology & Mindset' started by MTR, 4th Jul, 2017.

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  1. MTR

    MTR Well-Known Member

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    Would you be happy with this??

    MTR:)
     
    MTR, 4th Jul, 2017
    #1
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  2. DaveM

    DaveM Well-Known Member

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    Perhaps. Depends on context. If its in asset class that normally returns 5%, sure. If its in an asset class returning 100% then probably not.

    If its in an asset which is being pumped and dumped (eg commercial property being sold under market due to it needing a few hundred thousand in mechanical/service upgrades, or an owner occupier ramping the rent to get a sucker) then definitely not
     
    DaveM, 4th Jul, 2017
    #2
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  3. hammer

    hammer Well-Known Member

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    Yes!!!

    But usually that screams high risk....

    What is the investment?
     
    hammer, 4th Jul, 2017
    #3
  4. Wukong

    Wukong Well-Known Member

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    Yes!
     
    Wukong, 4th Jul, 2017
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  5. Sackie

    Sackie Well-Known Member

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    Is that 20% return on equity or total costs? Big difference there.
     
    Sackie, 4th Jul, 2017
    #5
  6. MTR

    MTR Well-Known Member

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    20% net profit on everything
     
    MTR, 4th Jul, 2017
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  7. Bayview

    Bayview Well-Known Member

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    Yes; I would be happy with that if it was on a cash investment.

    Compared to a Bank savings account or TD; even half of that would be very nice.

    Ok; come on; fess up....what investment have you been sitting on and not telling us about that is smashing it? ;):p
     
    Bayview, 5th Jul, 2017
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  8. Angel

    Angel Well-Known Member

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    She might be doing market research for an online business "clickbait"
     
    Angel, 5th Jul, 2017
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  9. Hamish Blair

    Hamish Blair Well-Known Member

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    Time frame? 20% in ten years or ten months? Or 20% pa?
     
    Hamish Blair, 5th Jul, 2017
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  10. chylld

    chylld Well-Known Member

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    Knowing MTR it would be some overseas commercial property share deal :)

    If not, my first guess was some sort of energy-saving device (e.g. solar or hot water, which I've done recently) that pays itself off in 5 years, 100/5=20%. However, even though my new hot water system will pay itself off in 3.5 years, the net annual return over its serviceable life is much less.

    It cost $3100 installed and is saving about 10kWh a day, or about $900 a year. After say 15 years of service it will have returned $13.5k in savings or $10.4k net, which is only 8.4% annual compounding return on the initial outlay.

    Less than 20%, but still high enough to justify IO :D

    /offtopic
     
    chylld, 5th Jul, 2017
    #10
  11. Gen-Y

    Gen-Y Well-Known Member

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    How long is a piece of string? :p
    You could be in the circle of councilor and just made changes to the zoning. Then you buy the place of interest knowing it has change zoning from medium density to high density.
    Ka-ching thanks for coming, as you didn't even do a thing but just reap the benefits.
     
    Last edited: 5th Jul, 2017
    Gen-Y, 5th Jul, 2017
    #11
  12. S1mon

    S1mon Well-Known Member

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    Poor post MTR , thumbs down
     
    S1mon, 5th Jul, 2017
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  13. Ed Barton

    Ed Barton Well-Known Member

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    If it was a payday lender - no. If it was US T-bills - yes.

    You need to expand and refine the question
     
    Ed Barton, 5th Jul, 2017
    #13
  14. Beachman

    Beachman Well-Known Member

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    Out of topics for new threads.
     
    Beachman, 5th Jul, 2017
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  15. Phase2

    Phase2 Well-Known Member

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    Yep.
     
    Phase2, 5th Jul, 2017
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  16. JamesM

    JamesM New Member

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    1. Investment class?
    2. Investment structure?
    3. Investor's Initial amount investment?
    4. Investor's on-going amount investment?
    5. Investment horizon?
    6. Investment entry & exit costs?
    7. Investment domiciled in?
    8. Investment return Net profit EBIT?
    9. Investment risk profile?
    10. ...
     
    JamesM, 5th Jul, 2017
    #16
  17. Ace in the Hole

    Ace in the Hole Well-Known Member

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    What's the table limit?
     
    Ace in the Hole, 5th Jul, 2017
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  18. alicudi

    alicudi Well-Known Member

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    Hi

    For me I would have to do a thorough analysis on the type of investment it is and whether I am comfortable with that type of investment. I would have to determine the amount of risk it involves and how much of that risk I could mitigate.

    Regards,

    alicudi
     
    alicudi, 5th Jul, 2017
    #18
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  19. PandS

    PandS Well-Known Member

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    There is a business that amasses profit around 35% a year for the last thirty years but it a rare beast and you have to be in their circles of super smart people between 300 of them they made about 50bn in profit to date and there is no stopping this year be another 30-40% profit
    no broken record yet, some years as low as 10s-20s other years as high as a few hundred %

    and they don't produce anything just brain power and shuffling money :)
     
    PandS, 5th Jul, 2017
    #19
  20. MTR

    MTR Well-Known Member

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    Why ?
    Just curious, would anyone be happy with 20% net return, asking a very simple question.

    Yes, no, don't know, don't care....
     
    MTR, 5th Jul, 2017
    #20
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