Re: [CANSLIM] Reasonable Goal?

From: "Robert Gammon" <rgammon51@yahoo.com>
Subject: Re: [CANSLIM] Reasonable Goal?
Date: Sun, 25 May 2003 06:40:11 -0500 (CDT)

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This is an Extended Internal Rate of Return calculation or a 
Compound Annual Growth Rate calculation.  XIRR includes cash flow 
calculations, CAGR does not.

To achieve the $2M goal, starting with $10K at age 29 and adding 
$10K each and every year thru age 40, requires an average annual 
return of about 46% for an XIRR of 40.81%

Check the math add-ins pack for your spreadsheet to see the 
calculations for XIRR().  It needs several inputs, including an 
initial guess as to the magnitude of the result, the range of 
dates, and the cash flows of the investment.

Robert Gammon
Houston, TX

On Fri, 23 May 2003 13:59:25 -0700 (PDT), Tomas wrote:

>Chris,
>
>I also did the calculation.  I guess the question is
>if 40% -50% return reasonable possible with CS when
>average out 10 years. 
>
>
>--- Chris Jones <SwingKid104@attbi.com> wrote:
>> Tomas -
>> I'm certainly not a senior CS'er, but I've been
>> looking into the same
>> question recently.  By the simple rules of compound
>> interest, here's how it
>> breaks down:
>> With a principal of $10000, you need to invest
>> $10000 every year, and get an
>> average return of 40% per year to earn $2 million by
>> the time you're 40.
>> 
>> I guess it all just depends on how good you are.  I
>> have a spreadsheet that
>> I found/tweaked where you can enter your own
>> Principal, Interest Rate, and
>> Yearly Contribution to figure this stuff out.  Lemme
>> know if anyone wants
>> it.
>> 
>> Chris
>> 
>> ----- Original Message ----- 
>> From: "Tomas" <tomas986@yahoo.com>
>> To: "canslim canslim" <canslim@lists.xmission.com>
>> Sent: Friday, May 23, 2003 12:57 PM
>> Subject: [CANSLIM] Reasonable Goal?
>> 
>> 
>> > This question is for the senior CS'ers.  If an
>> > investor is 29 years old right now, and his goal
>> is to
>> > make $2M by 40 to retire, is this a reasonable
>> goal?
>> > The assumption is that he will start with $10K and
>> add
>> > between $5-$10K capital every year.
>> >
>> > I understand that there are many factors like
>> > - how discipline you are
>> > - how diligence you are
>> > - how persistent you are
>> > - how you learn from your mistake and
>> >   do post analysis of your trades
>> > - and even how lucky you are.
>> >
>> > But assumption that the investor is decently good
>> on
>> > those factors.  What is your opinion?
>> >
>> > Thanks,
>> > tomas
>> >
>> >
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