What is your long term (5-10 years) profit in the share market?

John_Pinkelin · 11-02-2010, 10:07 PM

I am asking because over the last 2 days I have been buying a bunch of bonds of European governments in Euros, at interest rates of 5% or more. Of course these bonds are from places such as Croatia, Romania, Iceland and Spain (for some reason my bank doesn't allow me to buy Greek bonds) rather than Switzerland, Germany and France. But what are the chances of these countries defaulting? I think very very low.

I think that 5% for Euro government bonds is a very good investment, since you get about 2% for RMB bonds (and I wouldn't buy US bonds). So I wonder how it compares to long-term revenue from shares. Of course everybody can claim that s/he made 40% last year, but over the long term, say 5 to 10 years or more (if you have been investing for longer), what is your yearly profits from buying and selling shares, considering today's price of shares?

Please don't vote if you have been investing for less than 2 years or so.

PDLM · 11-02-2010, 10:09 PM

If I make 7% real per year then I'm happy. 10% and I'm very happy indeed.

Is your poll including dividends or just the capital gain?

bookblogger · 11-02-2010, 10:13 PM

Originally Posted by John_Pinkelin:

for some reason my bank doesn't allow me to buy Greek bonds

What about Scottish Bonds?

John_Pinkelin · 11-02-2010, 10:16 PM

Originally Posted by PDLM:

If I make 7% real per year then I'm happy. 10% and I'm very happy indeed.

So 5% for bonds doesn't look bad to me, specially since the risk (in my opinion) is very low, and I don't need to worry about it for another 5 years or so, until the bonds mature...

John_Pinkelin · 11-02-2010, 10:19 PM

Originally Posted by bookblogger:

What about Scottish Bonds?

Thanks. I didn't think about checking these ones. I will do so tomorrow.

PDLM · 11-02-2010, 10:20 PM

Absolutely - I have a number of bonds in my portfolio which will deliver 5-6% per year to maturity. That's the solid part of my portfolio.

John_Pinkelin · 11-02-2010, 10:29 PM

Originally Posted by PDLM:

Absolutely - I have a number of bonds in my portfolio which will deliver 5-6% per year to maturity. That's the solid part of my portfolio.

What bonds? What company or country and currency if you don't mind me asking?

Did you buy them in HK? Somehow I think that the choice here is very limited.

PDLM · 11-02-2010, 10:37 PM

Timing is all... I have some PCCW bonds, some from Aromatic Thai, and shares in HK Electric (which perform pretty much like bonds). Buy them today I guess you only get 2-3% (except HK Electric)

John_Pinkelin · 11-02-2010, 10:47 PM

Originally Posted by PDLM:

Timing is all...

Yes, I guess like the Euro bonds. I bought some yesterday, and today they are already more expensive. Bossini also is a bit like a bond.

I wonder why the bank doesn't allow me to buy Greek bonds. This sucks!

Thanks!