Risk and opportunity come together .

Off topic from?

My land not big, just 2 acres. Now looking for developer to joint-venture on building houses on the land instead of selling the vacant land for merely RM300,000.

Oh, you are age 50 .

Once your net worth reach RM1 million, then to get RM8 million should not be a problem. The 1st million is always the most difficult.

Of course, 10 years is short and I never thought can reach RM1 million to RM8 million by 10 years leh. Maybe I need 15 years to grow RM1 million to RM8 million. Below is my plan.

So far my track record in share investment is CAGR 20%, which means my portfolio size would double every 4 years. For your information, I just got the share margin facility not long ago, hence the CAGR 20% is an unlevered return.

Maybe my portfolio size was too small and I could flip CAGR 20% in the past, so to be conservative I assume my portfolio's return will be mean reverse to market return when its size becomes larger, likely my long run CAGR would reduce to 15% and with that my portfolio could double every 5 years, this indicates RM1 million could grow to RM8 million in 15 years. And don't forget if I also keep pumping in additional annual savings, then the period of achieving RM8 million could be even shorten further.

Correct me if I am wrong .

How old are you? Nowadays RM50,000 is not a lot to achieve through savings in 3 to 4 years loh.

I don't know if 1st RM1 million is the easiest or not, so far I have been working and saving for 7 years and investing for 9 years, but I still can't get through that RM1 million .

This post has been edited by noprogambler: Apr 10 2013, 07:35 AM

I have been investing for 9 years. As I said, my capital is small so the marginal return for such a small portfolio is normally higher than a bigger portfolio.

If compare my CAGR return with those investment legend such as Peter Lynch and Warren Buffet, their initial year of investment were much more higher at CAGR return of 30% to 40%. That is why in long run even though their portfolio mean reverse to the market's return, their long run average return since inception still can maintain at 15% to 20% because of their great performance in the beginning. I am not as good as these investment legends, so I only achieved 20% in my 20s. Likely I may only achieve 15% in my 30s and eventually 10% in my 40s.

Yah I was getting started through savings, plan every budget and spend below my mean. For your information, I was getting low salary to begin with and some more need to repay RM45,000 study loan when I was first coming out to work, it was quite tough in the beginning of my 20s .

This post has been edited by noprogambler: Apr 10 2013, 07:46 AM

Then sell the land and get the RM1 million and invest in other investment tools that can reward you higher yield.

Thank you.

With RM500,000 now, maybe I need to spend 20 years so to duble my net worth by 4 times then only can reach your amount of RM8 million, by then I also becomes 50 same as what you are now. Too bad that due to inflation the purchasing power of RM8 million in 20 years will be much lower than the RM8 million today, so I need to pump in more capital.

This post has been edited by noprogambler: Apr 10 2013, 09:22 AM

I am more a share fellow as this is my passion in doing research on securities. I am not pro-property as I am not comfortable and do not want to get involve the hassle in property investment, so if I have missed on the opportunity of property then so be it.

And I do not agree your statement that 'The returns of the average property is better than the average shares'. Shares have been performing better than property in many occasions. The only illusion that you think your investment in properties yield better than the return in shares without taking into considering the risk nature of 9x gearing on property investment.

Assuming if I am taking on 1.5x gearing for my investment portfolio (same as my share margin is now 1.5x of my portfolio) and still be able to maintain my past CAGR record of 20%, my portfolio's yearly return would be close to 50%. Imagine if I take up to 9x gearing as what you did property investment for the share investment and maintain a 20% return on the levered-investment portfolio, I might fare a fantistic return close to 200% on my principal within a year! Too bad that share margin financing won't allow me to take up as high as 9x gearing and also due to the risky feature on margin call.

No need wait for 40 years to reach RM30 million for the RM10,000 (return of 299,900%). If you bought Berkshire Harthaway's shares in 1967 at a price as low as USD7.6 per share with an initial capital of USD10,000, you may get a better return in 40 years as the stock price stood at USD100,000 per share or your investment would be USD132 million (return of 1,315,689%) in 2009 (42 years of holdign period).

So the moral of the story is that when there is a very super profitable property investment, there is also a very super profitable share return. When one has argued that we ordinary people cannot hold shares for long term to enjoy the huge return, then how we are so sure we could hold on a vacant land at a cost of RM10,000 for 40 years to sell at RM30 million?

This post has been edited by noprogambler: Apr 10 2013, 12:18 PM

I don't monitor the market price of shares that I bought. I'll review my portfolio's performance once in a year, so I don't have the feel of rollercoaster. You feel that properties are giving you the feel of 'Gentle train chugging up the slope' could be because properties don't have the quoted secondary market as shares .

If those who have done the research on shares as what they did on property investment, they could have avoided Repco.

This post has been edited by noprogambler: Apr 10 2013, 12:13 PM

You must be staying with parents loh. Anyway good to see you can save as compare to those who earn more than RM10k monthly but not able to save RM1k.

Then I quite symphatise who have bought properties built by Talam without the need to do proper research.

Yah you did, then I can on my own way different from yours .