ROI Expectations

Thought it would be interesting to see what yearly Return on Investment (ROI) % expectation everyone has on their investments they make in the stock markets.

I only started investing in stocks around 6 months ago. Before investing I wanted to get an idea what the average or expected returns were, however after doing some research I found expectations ranged massively depending on who I asked and where I researched.

I use the FTSE all world index as a barometer for my personal investing, so as long as I match it beat that, I’m doing well.

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The FTSE world index had a 16.3% return in 2020 which is great

Anything between 8 to 10% would be great but hoping that finding individual stocks that 2x in a Year would boost that return.

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Well in simple terms, beating inflation/savings interest rates. But actually aim higher of course. Whilst you can (as we all do) benchmark against iindexs to see if we can outpeform, one thing I am also keeping an eye on is which of my buys do well and badly and analyse what was my decision making to buy them:

  • Did I just see someone else mention it, do 10 mins reading and buy?
  • Did I make a value play that paid off?
  • Did I go for high valued but dominant stock?
  • Did I anticipate an industry/economic shift and capitalise?

Then over time I can see where my strength or weaknesses are. Right now biggest winners are broadly my value plays and larger economic factor analysis.

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60% minimum for next 5 years
Call me crazy :muscle::yawning_face::grin:

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I’m happy with 8% average over next 30 years

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I am guessing thats per year? as 60% over 5 years good but not crazy haha. 60% a year for 5 years you are a god :smiley:

Yep good amount to aim for i think. Plan for 8%, hope for 10-15%, and have an eye on being financially ok if only 5%.

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Yeah when planning, I’d usually say 7% as a conservative estimate. 5% after inflation seems fair enough. Really hope the market does better than that though, but not going to be dependent on it

Yeah fair enough, I meant 5% as there are various opinions of what one can take out of portfolio when retired without running out of money and its varies between 3-5% it seems.
By not depend on it I am guessing you mean this is non pension stocks? or that you will have other income?

If Fintech/Blockchain stocks continue their success, I’ll be expecting more than 60% year on year from you :joy:

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By not depend on it I mean when calculating how much I need to deposit I’ll use this conservative estimate. Hopefully it does better but my goal is based on a conservative estimate so anything above that will decrease the time it takes to attain that goal

Curious is that metric based on your previous experience or just based on your own research on general stock performance?

`The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%’

So pretty simple, 8% or more I’d be happy with, and assuming 7% in planning to be conservative

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Yep, minimum 60% pr. year for next 5 years :grin::muscle:

60% pr year, for next 5 years :laughing::muscle::grin: