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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

792.0. "measure risk and growth rates?" by CIDER::LEVY (The Bloodhound) Sun Nov 20 1994 16:53

    Hello
    
    I was going t o reply to Greyhawk in 789 but thought this
    deserved its own topic. 
    
    In note 789 Greyhaawk states that he is looking at two 'microcap'
    funds for a growth rate of 18-20%  year over the next 10 years. 
    
    This is quite a different way of looking at funds as a specific
    and narrow earnings range objective is stated together with risk
    level. 
    
    I'm interested to know how this type of assesment is made. 
    
    Thanks
    
    Malcolm  
T.RTitleUserPersonal
Name
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792.1My rationalePOBOX::CORSONHigher, and a bit more to the rightMon Nov 21 1994 12:4418
    
    	Malcolm -
    
    		Basically I invest at a return vs. risk level. I regard
    microcaps as very high risk (you can get hammered quick, and most
    funds I've looked at have at least one stock in the past 12 months
    that went from worth something to worth nothing). So High risk must
    give me high returns over time. 
    		Since I'm looking at 18% average over a 10 year period,
    I figure it is a reasonable call. I will hold this fund 10 years,
    I just don't want to get creamed in the end. Considering one can get
    8% from a bond fund today, this seems more than reasonable. Just
    looking for ideas, suggestions, and anything that makes me think
    more.
    
    		Thanks.
    
    				the Greyhawk