clarkkent, page-88

Debono, people don't use Buffett's precise returns as an example to follow. They apply his principles in the hope that they'll generate satisfactory returns.

We all know that 22% for 50 years is impossible, but we also all know that we don't need a net wealth of $60b like Buffett to live a comfortable retirement.

Our aim, as investors of mere mortal capability, should be to get something like a 7% real return over the long term. You start young and do that for 35+ years and retirement is an absolute breeze, even if one's income is such that they can only afford to invest a small amount of money, say, $3000 p.a. for 35+ years. Getting 7% p.a. real return for 35+ years isn't too difficult, but you need to be disciplined, patient and focused - we can all make 7% real return on any given stock, but the trick is to *not lose any money*. That's where most people fall by the wayside.

It sounds so easy in principle, doesn't it? Fact is, you only need to take a cursory glance around at society to realise that discipline, patience and focus aren't strong suits of mankind. The amount of people who are overweight, can't hold down a job, are addicted to drugs, cheat on their spouse, get into trouble with the law etc. tells us quite plainly that discipline, patience and focus are quite the exception rather than the rule as applied to society more broadly.