Benjamin Graham: ~20% CAGR over 20 years
Warren Buffett: 19% CAGR over 50 years
Benjamin Graham: ~20% CAGR over 20 years
Joel Greenblatt: 48% CAGR over 10 year
Get value at a fair price or even cheaper price let your investment returns compound in the form of dividends and high returns on invested capital. Buy your stocks as you would buy your groceries he says, not like when you buy goods with a snobbish effect like jewelry. You wouldn't buy your grocery list at a price higher than the established price, you go to the next retailer for better offers.
A key point is that Buffett likes to wait with cash for a big opportunity. In good economic times, Buffett likes to accumulate cash that he consequently deploys when there is blood on the streets (in the exact words of "Rothchild") like he did in 1999 2005 to 2007 and he has been accumulating cash since 2008 waiting for opportunities. Currently, he has what he calls his elephant gun at 110 billion free cash flow.
ALL WEATHER PORTFOLIO
Ray Dalio: 10% CAGR over 30 years
The goal is to be diversified across various asset classes so that you can do relatively well no matter what happens in the economy. If gold goes up you sell a little bit you buy more of what went down. He has invested in over 150 countries 20 asset classes derivatives options whatever you can imagine leveraged hedge all of faith.
"Big Companies Have Small Moves; Small Companies Have Big Moves."
Peter Lynch: 29% CAGR over 13 years
Small Cap companies are
- Not given much attention given to big blue chips
- Institutional investors tend to avoid them.
- Price of Small Cap companies tend to jump aggressively once these companies start expanding
Summary
Part of the very nature of human beings is having different temperaments and different ways to approach situations. It's usually best to either choose one of the above strategies or mix up all of them to come up with your own. Below we will put references to resources that can help you study each strategy in depth and choose one for yourself.
References:
Value investing
- Intelligent Investor by Benjamin Graham
- The little book
Peter Lynch
- One up On Wallstreet