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Anonymous

18 Apr 2019

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How much and how long do we need to start to apply Value investing to achieve say 500k returns?

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Ng Lip Hong Kyith

21 Aug 2018

Chief Editor at Investment Moats

Hi, $500,000 is a big sum of money. You can choose to do value investing, you could choose to do other forms of investing.

The difference is your rate of return, the level of adequate effort you require and your competency.

Value investing, a form of active investing is like entrepreneurship. It requires work. Work to learn about and work to get it right.

Thus it might not always be your cup of tea and the result might prove worse off then the market returns.

That said hypothetically you can achieve 8% per year over the duration. You will still need regular capital injection.

Suppose you hope to build up $500k in 15 years. Every year you will need to put in $18,400 or $1500 per month.

If you deconstruct the maths you will know how much you need.

My honest assessment is a large part of your wealth growth will come from capital injection.

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