My target is 15-20% capital gain per year. Lets take 17% as average.
So my capital can be doubled in 72/17 = 4.23 years.
From the same formula, my dividend yield will be doubled in 72/6 (assuming 6% growth rate) = 12 years.
Therefore, if i can achieve 5% yield on current portfolio, my yield will become 10% after 12 years. By then, every 1.2m of my investment will generate yield of 10k/month.
And in order to meet 1.2m capital in 12 years time, according to the 4.23 years to double capital. Lets say there will be roughly 3 times (12years/4.23) doubling capital in 12 years time. So say today's capital is just 150k. Double to 300k in 4 years. Double to 600k another 4 years. Double to 1.2m another 4 years.

And of course, nothing is easy in this world.
We need to constantly monitor and make adjustment to our portfolio in order to achieve the above target.
We can't just buy and forget and pray that the stock will perform as expected for the next 10 years.
Be prepare to put in lots of hard work is a must for investment journey, or any journey to a success.

So be optimistic while hardworking, and luck will be with you(and me).

This post has been edited by yok70: Jan 19 2013, 02:57 AM

Agree with you that it's very hard to find growing company that give good dividend.
Hard is hard, but there will be some from time to time. That's why I said we need to constantly monitor the market and make appropriate adjustment to our portfolio, and not just buy and hold.
For today's market, I think there are at least two sector have the potential of growth+high dividend. They are Bank and REIT/Property.
Emerging countries are all growing fast in the past 5 years and they should be continue so in the next 10-15 years. Malaysia also the same, if our government manages well, of course.
Banks are going to definitely ride along with this growth journey. Currently, many local banks are paying high dividend. Maybank, Public Bank etc.
And properties price in Malaysia is still well below peers even at today's price. I think it can only go up in the next 10-15 years before it stabilize and stop growing aggressively such as in the past 5 years. Therefore, REIT and properties stocks will be some best proxy to ride with this. And there are many REITs and properties companies paying high dividend today.
I'd say, it's quite a unique opportunity for investment in the coming 10-15 years. If things go well, it's a good time to growth our wealth.

I might be wrong. Please share your opinion.

I'd say 70-80% of my portfolio, I usually hold them until something not right then I sell. Or found something more yummy then I switch the holding.
The remaining 20-30%, I trade base on TA or news flow.

And I've no confidence to achieve 15-20% target. This is just my KPI target.

This post has been edited by yok70: Jan 19 2013, 08:21 PM

This is a frequently ask question that has been discussed massively and always come back one way or another. Looks like it's always frustrating.

Everyone has their own "theory" or opinion. For me today, I just think this.
It depends on:
1. How big is the investment. The bigger the money, the bigger the range of possible number of stocks to hold.
2. How many stocks that you can find are hard to resist and so damn want to buy and keep. If there is very few, then no point to "simply" buy many.

My take on Bursa, I think I can find 20 or so that I may wish to buy and hold. But I will try to keep the max at 25 so that it won't be too tired to keep track on so many companies businesses. However, look for a few companies with similar business model and condition may make the task a little easier.

So now gets down to how much the capital is.
Below $3000, I'd suggest don't buy any stock yet. Save until $3000 only start to invest on the very first stock.
From there on, every 5000 increment may invest on one new stock (if there is any attractive stock you found) but keep it slow.
And this is also because I recommend the best way is to buy in few batches (I like it 3 to 5 batches) simply because we never know when is the best price to buy/sell.

Just sharing some thoughts.