To Wejo’s question, outperform the market by 3-5% per year. Doesn’t sound like much, but if you compound at 10% instead of 7% for 25 years, you’ll end up with twice as much as just investing in the market.
To Wejo’s question, outperform the market by 3-5% per year. Doesn’t sound like much, but if you compound at 10% instead of 7% for 25 years, you’ll end up with twice as much as just investing in the market.
...before taxes....
This. 10% with 100% turnover results in 7% after tax returns. Most hedge funds are a poor investment. They might look good on paper but after market friction, fees (and performance fees), you are almost always down vs a buy and hold portfolio. They are scams.