About currencies

How can I guarantee the return on investment?

How can I guarantee the return on investment?

Very often, when a client is discussing the development of an investment strategy, the issue of guaranteeing the return on investment comes up.

The service guarantees are very simple: I work as an individual entrepreneur. Payment is accepted via Internet acquiring, after payment you will receive an electronic receipt. Everything is transparent and legal.

But about guarantees of profitability - a curious question.

Is it possible to guarantee the return on investment?

And the answer is this: "You can't!" Moreover, I am convinced that any Fund or person who GUARANTEES returns on the stock market is deceitful. Or he doesn't like money so much that he's willing to ignore the possibility of becoming a billionaire in a short time.

After all, if you can guarantee a return on the stock market - why not enter with this yield with a leverage of 10, 100, 1000 and not turn 14-16% into 140-160% or 14000-16000% per year?

And the fact is that there is no stable and guaranteed income. No one knows where and how much the stock market will go. When there will be rapid growth - as in 2017 or when there will be another crisis.

When I I am talking about a return of 9-11% or 14-16% . I am talking about a long-term investment. And I clearly understand that one year can be +30%, and the other 0%, -5%. There may be two profitable years in a row or two losing years. This is unpredictable.

Even geniuses like Buffett can't guarantee their own returns. similarly, they receive "paper losses" in a crisis. And they even lose money on stocks in peacetime - as the recent case of Kraft Heinz illustrates.

Therefore, when you start investing, you need to clearly understand that there are no guarantees of profitability and there can not be. They can't even be found on bonds (especially if you take into account The REAL yield minus the inflation rate), to say nothing about the shares.

But a long investment distance, a conservative and reasonable approach to selecting shares, and a diversified portfolio of first-class securities allow you to get a good average annual return on a long-term basis. distances.

#investment #return #money #profit #shares #risk #guarantee