How to get to £1M in ten years?

[Aminatidi]

I'd still ask the same question in my original (unanswered) reply.

It's a good question and I don't know how to answer it.

I'm not a fan of volatility put it like that.

Best real world example I can think of?

My portfolio is below.

If I'd held it for the past 12 months I'd have returned around 27%.

If I'd held 50/50 Fundsmith and Capital Gearing Trust for the past 12 months I'd have returned around 10%.

Which one feels riskier?

To me it's the 50/50 because one is 50% "pure" concentrated equity exposure.

Stock name % Weight Sector
1 Capital Gearing Trust Plc Ord GBP0.25 35.9% [N/A]
2 Personal Assets Trust PLC Ord GBP12.50 35.0% [N/A]
3 Ruffer Investment Company Red Ptg Pref Shs GBP0.0001 13.1% [N/A]
4 Baillie Gifford US Growth Trust plc Ord GBP0.01 8.7% [N/A]
5 Scottish Mortgage Investment Trust Plc Ord GBP0.05 7.2% [N/A]

[dealtn]

I'd still ask the same question in my original (unanswered) reply.

It's a good question and I don't know how to answer it.

I'm not a fan of volatility put it like that.

So rewind a year, and you don't know the future. Your pot falls 20% in a month. Is that a worry for someone who is "not a fan of volatility"?

[Aminatidi]

I'd still ask the same question in my original (unanswered) reply.

It's a good question and I don't know how to answer it.

I'm not a fan of volatility put it like that.

So rewind a year, and you don't know the future. Your pot falls 20% in a month. Is that a worry for someone who is "not a fan of volatility"?

Last year it was down around 15-17% in March though it was a slightly different looking pot.

I left the wealth preservation funds untouched.

It wasn't fun or pleasant (is losing money ever even if it's "on paper"?) and I also took some profits with some equity holdings at the time as it felt like there was much worse to come.

I think psychologically I'm in a better place now I've sat through a pretty major storm albeit apparently a quick one compared to other major storms.

If I had to put a number on things I think 20% would be at the upper end of my appetite.

[vrdiver]

Noy answering the question, but just commenting on the tables of data being posted. You might not be aware there is an excellent formatting tool created by members of TLF: http://lemonfoolfinancialsoftware.weebly.com/tableformat.html

If you use this, the posts become much more readable...

Cheers
VRD

[dealtn]

It's a good question and I don't know how to answer it.

I'm not a fan of volatility put it like that.

So rewind a year, and you don't know the future. Your pot falls 20% in a month. Is that a worry for someone who is "not a fan of volatility"?

Last year it was down around 15-17% in March though it was a slightly different looking pot.

I left the wealth preservation funds untouched.

It wasn't fun or pleasant (is losing money ever even if it's "on paper"?) and I also took some profits with some equity holdings at the time as it felt like there was much worse to come.

I think psychologically I'm in a better place now I've sat through a pretty major storm albeit apparently a quick one compared to other major storms.

If I had to put a number on things I think 20% would be at the upper end of my appetite.

If I am honest then, in your original scenario, I would say your target is too ambitious for your risk appetite.

[Aminatidi]

Hopefully a bit more readable.

[Aminatidi]

If I am honest then, in your original scenario, I would say your target is too ambitious for your risk appetite.

Thank you I'd sooner people were honest than lie

I'm not about to go out and switch to being 100% in higher risk equities just to try and do this.

It was really about whether there were options and approaches other than doing that.

The past years returns have as I said been incredible given "just" 15%" in those higher volatility trusts.

I doubt that will continue though which seems to present some choices between trying to carry on a "small amount of rocket fuel" approach or commit a larger allocation to equities.

I suppose like anything it works until it stops working.