In March 2015, I set out to achieve at least 8% CAGR with a review at the end of 2019. My full year return in 2015 was -10% and in 2016 was 41%. This results is a CAGR is 20% over the past 2 years.
So what will my return be for 2017? I do not know.
Anything can happen. It could be a bad year as media has reported or performed much better than surprise. There are too many factors that affect the world economy and human sentiment will continue to drive the stock market direction. However, one thing that will remain unchanged is that a company with strong fundamental will survive. With strong balance sheet and cash flow, it will be able to sustain its dividend payout and might even grow.
Will the market crash? I do not know.
If yes, then it’s time for shopping. Again, company with strong fundamental will bounce back.
My target remains to achieve CAGR of at least 8% and strategies remained unchanged.
- To learn about the companies that I am vested in.
- To search for strong companies or hidden GEM to invest in.
- To divest from a company when fundamentals changes or when better opportunity is avail.
- To keep to my portfolio allocation.