What Can a CAGR of 32.84% do?
“Warren Buffett’s deputy grew his retirement account from $70,000 to $264 million in 29 years, ProPublica reports”
$70,000 into $264,000,000 in 29 years. “All” it took was a Compounded Annual Growth Rate (CAGR) of 32.84%…
Yet many (most) out there are putting a big chuck of their portfolios into extreme long shots in order to try and catch a “ten bagger”. Long shots with multi-bagger potential is fine if one is very diversified and really got a good grasp of the Risk/Reward. Otherwise I continue to believe that chasing “Probable” 50% returners with margin of safety etc is the way to go.
Hi Eric,
I’ve been doing a bit of research on some miners & explorers in the Golden Triangle in BC. Where I grew up btw, I know all that country real good. Looking at the pictures bring back lots of good memories.
Anyhow, I’m wondering what you think about [if] these exploration companies become miners, will they pay dividends?
Capital gains are one thing but over a 10 year period they don’t amount to much of a CAGR. ESK has a good chance of being a 10-bagger, SEA not so much. Too early to tell about ENDR. That’s why there’s a market there; I understand that.
I see Prentium is making free cash but not paying dividends, Newcrest is paying a handsome dividend but how much does Red Chris participate in that?
So, I’m wondering what your opinion is on these juniors ever becoming dividend paying miners?
Even now NVO is earning cash. Give them a couple years to pay down some debts and get some in-house financing going; what’s the chance that they will payout 30% of their free cash in dividends?
I appreciate any response you’d care to offer.
K