generally speaking, the problem is that those who teach, haven't much of a clue about how to amass wealth. they only teach because that is the best way they know to make money. so how are they going to teach anyone how to make money?
20 years ago i didn't have much of a clue myself and then the penny suddenly dropped.
it's hard to make money if you just try to make money. i could never amass wealth doing that.
rather, you have to try and compound money.
i became obsessed and studied compounding tables and doing what-if calculations.
i brought this type of thinking into managing SMSFs. originally we had two funds, although we only have one now.
in my whole life i have never done better than double money in a share.
10-baggers are mythical beasts and unknown to me.
for the sake of clarity, in what follows, i have not considered the paying of pensions nor tax implications ....
i measure my ability to compound money by updating the CAGR each year.
i have been managing money in super fund/s for 12 years now and the CAGR is 18 percent and that despite losing 21 percent in the 2008 financial year.
what i have done is turn the super money into a 7-bagger over the last 12 years.
now look what compounding does ...
if the fund can maintain the same CAGR over the next 12 years , it becomes a 53-bagger.
and if the fund can then maintain the same CAGR over yet another 12 years, it becomes a 387-bagger.
