How can we earn 25% CAGR in mutual funds?

Short answer…nobody knows….but chances are probably nowhere.

A 25% CAGR means you will be doubling the asset value in less than 3 years and unless one is extremely lucky and/or extremely brilliant, that is a steep uphill by any standard.

If any enterprise were to give 25% CAGR, it would have to grow at least at the rate of bottom;line would be impacted by 25%, net of cost. Or else the pace of growth has to be so blistering that future discount will need to be that steep.

It is unlikely any biz can be there for any length of time. At 35% growth rate of biz, it will own the world in a short while.

Leave a Reply

Your email address will not be published. Required fields are marked *