The average return on equity investments (without reinvestment of dividends) is about 18% over the past 31 years. Does it mean that every year you got 19%? The answer is no. Such ‘zero standard deviation return’ is possible only in CERTAIN debt instruments. In equity investments there have been years of +242% as well […]

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Last week I was speaking to one of the bright kids I work with. For practical purposes let us call him George Orwell. This kid (25 years old)  was born in 1984 and has just started on a nice salary. He spends well but can put away a nice amount on a regular basis, but […]

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