The Objective

There is no long introduction for this topic, I just post in on my personal behalf. Studying and gathering some information regarding investment, there is a main objectives of investment: Get the biggest return in the quickest way.

Everybody likes it, some even died for it. But the truth is, what is the our expectation?The biggest is infinite and the fastest is defined narrowly from nanosecond to our entire life? We should define our goal.

One would said he will be content if he has enough money to live on. Other will said it's infinite in the long run and in the long run (200 years) we are all dead, not even enough for us to escape the enslavement of money.

So, the goal we ought to afford is just to live comfort in our life time. Given a reality time, let said our enjoyable life time, 30 years, it should be enough for us to time make use our capital to gain our projected amount. How much shall we chasing?

Number shouldn't be a issue here, percentage does. None can't have billion of return using only some pennies in their life time. We should admit we invest more as we goes and that count. The real issue here is the percentage. Imagine 100% of return in straight tenth, that is 1024 times of original capital.

That true is we can afford the uncertainty of this type of return. Alternative outcome of such return is usually zero, and is ten times that we must pass such uncertainty. Tossing a coin ten times with straight outcome is only luck, or you cheated.

So, what we are looking at is something realistic. We should outperform something that will be happen in our life time when our investment really ended and pays.

The basic line that we should look upon is inflation. We should not let inflation erode our purchasing power. After all, we can't be worse than we start. For the past decades, when money become fiat curreny and can be control by governments, there has been steady stream of money supply and economic growth that leads to steady inflations averaging 3%. CPI never falls and price goes up. Our goal that we should first archive is to maintan our purchasing power. This is a basic and certain one.

Second, we are looking at relatively safe options that generate return. Government bonds or Treasury Bill some might add. This relatively safe invest doesn't mean there is no default or uncertainty. But, it's very certain that our government won't fall or bankcrupt in one day. So, it's deemed relatively safe. Our second objective is to make sure we won't fall behind the return of investing such relatively safe option.

To be continued

No focal point on the topic.
So topic closed.

Don't need twist and turn, straight forward post what is the intention of the topic, then only elaborate further.