Simple investment strategy using compound method
I plan to use following simple investment strategy in my Roth IRA and IRA accounts – what I have learned from the Amazon Prime serial “Number”
lay aside $1,000,
| +% on $1,000 | #s to M | #s to 10M | #s to 100M | #s to B |
| +100% | 10
($1.02) |
14
($16.38) |
17
($131.07) |
20
($1.05B) |
| +75% | 13
($1.44) |
17
($13.54) |
21
($127.00) |
25
($1.19Bl) |
| +50% | 18
($1.48) |
23
($11.22) |
29
($127.83) |
35
($1.46B) |
| +25% | 31
($1.01) |
42
($11.76) |
52
($109.48) |
62
($1.02B) |
- double 14 times, then $1000 becomes $1000 x 2^14 = $16.384 million
- double 17 times, then $1000 becomes $1000 x 2^17 = $131.072 million
- double 20 times, then $1000 becomes $1000 x 2^20 = $1.048576 billion
- All I need is 10, 14, 17 and 20 times, and no more and no less
- +25% 31 times, then $1000 becomes $1000 x 1.25^31 = $1.01 million
- +25% 42 times, then $1000 becomes $1000 x 1.25^42 = $11.755 million
- +25% 52 times, then $1000 becomes $1000 x 1.25^52 = $109.476 million
- +25% 62 times, then $1000 becomes $1000 x 2^62 = $1.0196 billion
- All I need is 31, 42, 52 and 62 times, and no more and no less
- +50% 18 times, then $1000 becomes $1000 x 1.5^18 = $1.478 million
- +50% 23 times, then $1000 becomes $1000 x 1.5^23 = $11.222 million
- +50% 29 times, then $1000 becomes $1000 x 1.5^29 = $127.834 million
- +50% 35 times, then $1000 becomes $1000 x 1.5^35 = $1.4561 billion
- All I need is 18, 23, 29 and 35 times, and no more and no less
- I will use whatever equity (Options, stocks, special situations etc) to make the investment double each time. Once it is doubled or more than doubled, I will liquidate it no matter what, and then invest in another opportunity.
- the investment opportunity should be screaming opportunity – like a home run
- I need to be very patient in finding the opportunity, and very decisive to sell once it doubles.
- the worst scenario is, when I lose them all, it is only $1000.
- Also, I have four accounts that I can play with, one success in one account, I can be financial freedom.
- Reference comparison, if I invest $5000 instead of $1000
- double 8 times, then $5000 becomes $5000 x 2^8 = $1.28 million
- double 11 times, then $5000 becomes $5000 x 2^8 = $102.4 million
- double 15 times, then $5000 becomes $1000 x 2^15 = $163.84 million
- double 18 times, then $5000 becomes $5000 x 2^18 = $1.310 billion
