How to Achieve High Investment Rate of Returns

In this video, we will learn how to achieve high investment rate of returns

Transcript:

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How to achieve returns off ten percent and above. I constantly talk how current market returns are extremely low and offer too much risk for those later returns. Yes, AP offers returns for five percent in the long term. What the risk is always a fifty to seventy percent loss now. How could chief returns in this market and in any market, about ten percent? Well, it’s not that complicated. You just have to play a little bit of common sense to what you were doing. I’ll show you a few examples and determined three, three rules that you have to follow. I’m sure your returns will be much higher. The first rule is very simple. Don’t settle for returns that lower in ten percent. That’s it. How do we determine rate of returns? Look at the returns of a stock. If the earnings, If the price earnings ratio is around, then you know you can expect returns of ten percent. If the price of an inspiration is around twenty, you can expect earnings off five percent. If the press earnings ratio is around five as it is for our feet, then you can expect returns of twenty percent for here. It’s a simple at that in the long term. So investors always think we have to invest. We have to invest. We have to invest working on invest. If you don’t find an investment that offers you ten percent or more, don’t do anything now. They’re always investments that over ten percent they’re always around. I shall do the anti video. There will be other videos that are soon with investments that offer more than ten percent. We also did the Kroger video recently. Also ten percent return. Other examples now Buffet Board a steak off about two million in four big US errands. Investors. Two billion in their airlines. Southwest Airlines, United Continental Holdings. American Era Erin’s group. He messaged in those company when American Caroline’s was a thirty five and had the price earnings ratio of four point seventy seven four point seventy seven. That is twenty percent return on investment from earnings that the airlines stock price was thirty eight. The price earnings was seven point sixty five. Fifteen percent return. Now the stock price is already fifty two. United Continental Holdings. The stock price was forty eight. Presser Next racial, seven point eight percent in the quarter when Buffett was By now the seventy seven Southwest Airlines the price was thirty eight. The price or inspiration was ten when off it was buying. Now it’s sixty one point eighty. No. Another example of the buffet buying. When he started to buy his Apple stake, the price earnings ratio was below ten. So just a few months ago, you could have bought Apple. That’s a twelve months ago at the president’s ratio below ten percent return risk. Very real risk. I think Apple will sell iPhones for the next decade or whatever your brother is out there because the customer base is very loyal. So if you look at that and if you don’t do anything else until you find an investment that has satisfying returned about ten percent and low risk, you cannot lose, and in the long term, you will achieve returns off about ten percent. The second group, very closely related to the first true, is until you don’t you find a low risk, high rate investment. You don’t do anything just by catch your pile of cash and you sit down in way. Wait that prices lower themselves and that somebody something falls into your fishing that this is pretty much what Buffett is doing. In the last three years, as a situation became inflated, he has been simply buying up cash in waiting for a good investment. His cash balance almost doubled in the last three years as it went from around forty billion to the current almost ninety billion dollars. So Buffet has a loaded gun ready to shoot, but he doesn’t shoot at everything. He waits. So return or investment from earnings is around ten percent. He’s even happy now. You, too. The amount of money he has with eight nine percent twenty, thirty years ago he was only happy with twenty percent. So it’s you will get what you look for also in the investment world, and the first thing to look at is perhaps the most important is risk. Now you can find an investment. Okay, this year’s ten percent. If that investment is very risky, then you have to see what is the probability that a investment goes bankrupt, doesn’t hear the expected ten percent and off course, use what you expect, and then you have to put it into a probability chart. See how it affect your portfolio and see what is the expected return for the risk in order to yield ten percent, for example, have made here a table. We have five investments A B, C D e. Where three of them were you? Ten percent? One. Well, you zero. We can sell it for five years for the same amount that we paid for and won will go bankrupt. Returns after five years are cumulative. Be positive invested fifty thousand return in city eight thousand. But the year here is three point ten percent which is not that because to investment for the whole portfolio was they’re with In order to mitigate for the risk, we have to find that trees were work up. Another five can go bankrupt. One will do nothing, and free will achieve the expected returns. We have to find years of twenty percent American airlines at the price earnings ratio off below five Was one such company. Yes, there is the possibility that a company goes bankrupt the next five, ten, twenty years. But if you want five similar companies, then the probabilities all go bankrupt is very low. But you have a portfolio that has a certain amount of freeze, but a very high probability that you will reach them percent. For example, in the start, similar as before, ten thousand invested in each company return after five years, with twenty percent here. Total return after five years in eighty one percent and every year yield is ten points, twenty percent off course. I exaggerated a bit, with one company going bankrupt out of the five one doing nothing. If you are intelligent, smart and really careful about the risk, I’m sure it’s possible. Any environment. Five. To find five investments, they have much more risk, or even ten investments during a longer period of fine one two years that can offer returns hired ten percent with low risk. Perhaps one out of ten will go bankrupt, too. Will do nothing, and the rest will achieve their expert, fetid returns. This is already much higher than what’s going on in the market. Current folks. Simple solution. Just set a target. I want this for that risk. And don’t settle for anything less. It will make your investment investments much, much easier. The current market is for Rick. There are many stories about growth, however. Those investments are very, very risky. But when the tide shifts in a bear market, those air foreign investments panic sell, bank saying will make them very, very cheap. That’s what usually happens. You just need to be patient and by cash. As an example, I’ll show you again. This is my favorite chart. Nineteen eighty seven after October crash, Buffet started to buy Coca Cola, and he bought his entire position at two point three dollars per current adjusted press. Now for 30 years later, just his didn’t from one stock is one point forty eight dollars per share. Thus he gets sixty five four percent on his initial investment per year now. So if you know what you’re doing, if you’re willing to do the analysis, if you’re willing to invest and only invest when your risk is well return above ten percent in ten twenty years, you can have returns that are fifty percent sixty percent on your initial investment, just from the dividend. A few of those investments during your whole lifetime and you’re set for life. I think it’s worth to be patient and wait for all the criteria to align. Hi return low, low risk. Thank you for watching. Please subscribe. For more examples about how a writer low risk investments, discussions about sectors, company analysis what there can improve our investment returns in leader comments below questions. Let’s create a community where we all have profit from it.