Rick
It’s been a while since I’ve seen a post in this thread and there’s been a lot of talk about doom and gloom over the past few weeks.
If you want to hear something positive, this 14 minute video by Scott Philips, CIO at The Motley Fool, reminds us that the All Ords Index has compounded by 10% per year over 100 years, and over the last 30 years your investment would have grown 16 times.
He says it could be different this time, but he hasn’t lost faith in human capitalism and that if you have any spare cash, it’s time to put it to work (I guess Scott also has a vested interest in saying this).
He says if you are waiting for the bottom, you won’t find it, and if you wait until you know there will be no recession, the upside will already be priced into the market.
He reminds us that nobody knows exactly what will happen and the experts wearing black suits in fancy glass buildings are no wiser than we are. We have the advantage over fund managers as we are invested for the long term.
…At least it made me feel better about picking up a few beaten down businesses on my watch list today that could be more beaten down tomorrow.
Bondie
I held OSH 20 years or so ago when it was 5c,
Tpped out around $8.5 pre pandemic from memory
LKE is recent one for some
umop3pisdn
Cross thread from the book recommendations post.
I have received the first book I ordered and have dived right in: 100 Baggers: Stocks that Return 100-to-1 and How to Find Them by Christopher Mayer.
The book is based on the US stock market.
I have only been able to find PME and OCL as two 100 baggers on the ASX.
Are there others?
Rick
What if I said, 'You don't need any stock selection skills to pick a 100 bagger!' You might reply 'Andrew, bring back the down vote!'
What if I said, 'all you need to do is invest in the ticker VAS. You might say 'Now I know he's nuts, that's an ETF for the ASX 300'
What if I said 'If you are under 45, you will very likely see VAS become a 100 bagger'. Still don't believe me?
OK, here's my reasoning.
You only need to know two things;
1. The most important rule of investing, 'The Rule of 72'
2. The compound return from the All Ordinaries Total Return index (ASX: XAOA) from June 1979 (when it started) to end June 2020 is 11.49% (Marcus Today).
Quite simply the Rule of 72 is, t = 72/r, where t = the number of periods requireded to double an investment's value, and where r = interest rate per period, as a percentage.
So how many times does your investment need to double to make it a 100 bagger? Let's start doubling 1, 2, 4, 8, 16, 32, 64. 128. OK, that was 7 times and we have more than a 100 bagger!
Now using the Rule of 72 where r = 11.4, we need 6.32 years to double our investment. We just worked out that we only need to double our investment 7 times to have more than a 100 bagger. So that means it should take about 44 years (7 X 6.32) reinvested in the Australian Stock Market to reap a 100 bagger! Now do you believe me?