Total Market Value: $1,567,891.46
Total units: 885,935.9229 units
“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” - Albert Einstein
Dear Investors,
I am not sure Albert Einstein really said that, I am even unsure how one of the greatest scientists handled his personal finance; never the less this has become one of the most quoted line in finance.
After 5 consecutive months of falling, the market is stabilizing this month, it still fell but not as much as before, the stock dividend I received this month have made the loss even.
From the start of this fund (since June, 2009), I have already received 40k dividend from Stock and 40k interest from loan, all these “free cash” have provided less significant, but pretty sweet performance in my fund, however if you let time do its job, the reinvested interest will keep the snowball rolling, and the result might surprise you, this is what the compound interest is all about.
If the power of the compound interest can be shown in the following graph, say if you invested $1000 at year one.
Year
|
5%
|
10%
|
15%
|
1
|
1,000.00
|
1,000.00
|
1,000.00
|
5
|
1,215.51
|
1,464.10
|
1,749.01
|
10
|
1,551.33
|
2,357.95
|
3,517.88
|
15
|
1,979.93
|
3,797.50
|
7,075.71
|
20
|
2,526.95
|
6,115.91
|
14,231.77
|
25
|
3,225.10
|
9,849.73
|
28,625.18
|
30
|
4,116.14
|
15,863.09
|
57,575.45
|
35
|
5,253.35
|
25,547.67
|
115,804.80
|
40
|
6,704.75
|
41,144.78
|
232,924.82
|
45
|
8,557.15
|
66,264.08
|
468,495.02
|
50
|
10,921.33
|
106,718.96
|
942,310.82
|
The longer it took;
the return for different compound interest will be very significant. This is
why if you have met Warren Buffett in 1964 and bet $1000 on him, it will become
$11million today, for he has achieved an average 22.3% per year! But nowadays in
financial world, I constantly heard people say they can teach you to earn 100%
in a year, even within a week! Well, I will let you be the judge.
I will be happy
with 10% each year, but firstly, I need to achieve such target, secondly you
must wait for a long time, anyone who want get rich by short term investment, he
might succeed or fail in short term, but definitely will fail in long term.
Regards,
Calvin
「複利是世界第八大奇蹟。有誰理解它，賺到它...有誰不理解的...付給它。」 - 愛因斯坦
親愛的投資人,
我不知道愛因斯坦是否真正說過這句話，我甚至不確定最偉大的科學家之一如何處理他的個人財務;但這句已經成為金業被引用最多的話。
連續五個月下跌，市場終於在本月穩定下來，雖然它仍然下跌，但不會像之前那樣多，我今個月收到的股票利息抵償了下跌的損失。
從這個基金的起始（自2009年6月），我收到已經4萬的股票利息和4萬的貸款利息，所有這些「免費現金」在我的基金提供了不太顯著，但相當甜蜜的表現，但是如果你讓時間工作，其再投資利息將保持這個雪球滾動，而結果可能會讓你大吃一驚，這就是複利。
如果在複利的威力可以在下面的圖顯示, 如果你在第一年投資了$1000。
年份
|
5%
|
10%
|
15%
|
1
|
1,000.00
|
1,000.00
|
1,000.00
|
5
|
1,215.51
|
1,464.10
|
1,749.01
|
10
|
1,551.33
|
2,357.95
|
3,517.88
|
15
|
1,979.93
|
3,797.50
|
7,075.71
|
20
|
2,526.95
|
6,115.91
|
14,231.77
|
25
|
3,225.10
|
9,849.73
|
28,625.18
|
30
|
4,116.14
|
15,863.09
|
57,575.45
|
35
|
5,253.35
|
25,547.67
|
115,804.80
|
40
|
6,704.75
|
41,144.78
|
232,924.82
|
45
|
8,557.15
|
66,264.08
|
468,495.02
|
50
|
10,921.33
|
106,718.96
|
942,310.82
|
如我做到每年10％已經很高興，但首先，我需要實現這個目標，其次，你必須等待一段很長時間，誰想要靠短期投資致富，他短期內可能會成功或失敗，但長期必定會失敗。
