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.
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.
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:
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.
60% minimum for next 5 years
Call me crazy 
I’m happy with 8% average over next 30 years
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 
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%.
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 
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
Yep, minimum 60% pr. year for next 5 years
60% pr year, for next 5 years 
So it has now been exactly a year since I started investing into stocks and T212 here is my result:
Y1 ROI = 15.24%
I just managed to achieve my personal target so I’m pleased, however at one point (pre Feb 2021) I was on track to achieve c. 40-50% returns so that was a hard pill to take. My portfolio really took a beating from the small cap/high growth tech stocks crash in Feb/March this year.
Biggest realised profit: BioNTech
Biggest realised loss: GHSI
I’ve learnt a huge amount this past year and still learning.
One of the biggest lessons is to cut losses quickly. Only once have I recovered from a -50% fall in a stock price but that was an exception. The many other times they have not recovered and kept falling into a black hole
Current strategy: continue my rotation from small cap to large/mega cap value stocks, recovery/vaccine plays, lithium.
Anyone have any other strategies they are considering or implementing?
Congratulations on making a positive return.
What do you use as a benchmark.
Please don’t take this the wrong way, but I think the FTSE All World has returned 23% in the past 12 months(VWRP as an example).
Picking an appropriate benchmark would be a good means to measure performance - one that has a similar ESG and investment strategy to yourself.
I understand. I’ve tried to keep a track of the Russell 2000 and S&P 500 both of which have done amazing this past year and both beat my performance by a long shot.
15-25% average return for the rest of my investing career.
A popular myth:
“You can outperform for some years but over time you can’t outperform the index”
This in my opinion is the biggest lie in investing and the data is narrowly focused on the ‘average investor’. If you are an active investor and spend several years really learning financial modelling, valuation, cashflow projections, economics, risk management and you don’t try to time the market.
Be completely indifferent and become a nitty gritty type with your investments with diversification you should be able to outperform the benchmark by several hundred basis points. This is also psychologically hard for alot of people because real investing is boring and unsexy.
There’s actually a lot material online for how to outperform the market but this shouldn’t really be the goal but will come as a result of making good investments over time.