Is 15% gross return on your investments annually an obtainable task?

Question

How many of you have done this consistantly?

Answer 1

Over the long term--Yes. There are times that we get below 15% return, but the good years earn more than enough to compensate for the down times.

We have a lot to be thankful for.

Answer 2

returns are related to risk, and risk is only lowered in the stock market by diversification, and the nerve to buy and hold.

example: the ten year average return on the vanguard emerging markets index fund is 15%, but emerging markets are volatile, so you may lose big one year, gain big the next. But if you buy and hold an index mutual fund for at least 5 (preferably 10) years you will lower your risk greatly.

also: investing in a tax-advantaged account makes a huge difference. an IRA, or 401k plan allows you to earn compound interest tax free, and that makes a HUGE difference in what you keep.

Answer 3

yes, I have averaged 8% this year and June isn't over with yet.  I invest in high yield dividend stocks and mutual funds.  ADVDX pays just over 15% per year.  Yes they do go up and they do go down in value, but most pay me cash each month to the average of 18% per year.

Answer 4

Buffett's Berkshire Hathaway (BRK.A) has returned 5.1% over the past 10 years.

Answer 5

There are other funds, like the CGM Focus fund that is managed by Ken Heebner.  I believe it has about a 24% annual return over the past 10 years.  It can be done.  One reason mutual fund managers can't really significantly outperform the markets over the long haul is that they are trying to manage huge sums of money.  These things move like freight trains, not like sports cars.  It is a very difficult, costly, and time consuming process to change a lot of a fund's holdings.  Individual investors with much smaller holdings (millions or tens of millions) make 15% or more all the time.  They can take more risk, and can move in and out of positions very quickly.

Go find the book "The New Market Wizards" and you'll learn about some of these traders.

Answer 6

Yes it's obtainable but not necessarily easy and or guaranteed no matter how you invest or what you invest in. Putting your money in mutual funds probably won't do it for you over all and consistantly. I do have money in CGM focus Fund that the person over me stated and it has done quite well for awhile now.

As far as investing in the stock market, you would be more profitible picking individual stocks that are blue chip stocks and really really doing some serious research time on these and watching for ladders up and buying and selling along the way. This is more speculative than solid investing strategies though and the risks run higher for losses. To try for 15% returns though you will need riskier moves than conservative investing practices.

The other way to make those types of returns on money is outside the stock markets entirely. Real estate investing can bring in good returns averaged out over all. Starting a business is another.

My answer to your second question is very few can answer yes to this truthfully. I have done it averaged out over the long haul but it was not made on the stock market but in the real estate and buying and selling small businesses.

Answer 7

Check these out:

All of the following stocks have yields of 10% or more, PE ratios below 17, and PEG ratios below 2.2. Remember, dividends are subject to change or termination, however, most of these stocks have been paying dividends for at least a few years.

Arbor Realty Trust, Inc. (ABR) is a debt oriented REIT that invests in real estate bridge and mezzanine loans, mortgage-backed securities, and discounted mortgage notes. They have paid quarterly dividends since 2004. This company pays a yield of 17.6%, the stock has a PE of 3 and a PEG of 0.39 .

Gramercy Capital Corp. (GKK) is a debt REIT that holds first mortgage loans, mezzanine financing, preferred equity bridge loans, and permanent loans. They have paid quarterly dividends since 2004. This company pays a yield of 15.4%, the stock has a PE of 3 and a PEG of 0.37 .

Northstar Realty Finance Corp. (NRF) is a commercial oriented REIT that invests in mortgages secured by income-producing real estate properties, commercial mortgage backed securities, REIT unsecured debt, and credit tenant loans, and net lease properties. They have paid quarterly dividends since 2005. This company pays a yield of 14.5%. The stock has a PE of 3 and a PEG of 0.48 .

Anthracite Capital Inc. (AHR) is a commercial oriented REIT that invests in commercial mortgage-backed securities also known as CMBS, secured debt backed, mezzanine loan financing and equity. They have paid quarterly dividends since 1998. This company pays a yield of 12.7%. The stock has a PE of 6 and a PEG of 1.27 .

Remember that the economy still has problems.  Worldwide.

Good luck.    Jack

Answer 8

It is obtainable, but I have done it only very infrequently.  There are mutual funds that have generated 15% annual returns fairly consistantly over time.  

Here are a few:

BlackRock Latin America I 10 yr annual return 22.8%

Vanguard Emerging Markets 10 yr annual return 15.8%

T Rowe Price International 10 yr annual return 16%

DFA Asia Pacific Small company I  10 yr annual return 19%

Notice that they are all foreign stock funds.

Answer 9

Very, very few.  Warren Buffet is one. To get that kind of return consistently takes knowledge, resources and experience.  Without all three, you will eventually falter.  A more realistic goal is 10% but even that takes a good plan and some discipline.