target annual return for BIRTP model account?

**qfhe** Mon Apr 11, 2005 10:50 am

target annual return for BIRTP model account?
Hi blast,

Out of curiosity, do you have a target annual return for BIRTP model account? In each issue, you compare the performance of the model account against S&P index. Does that imply your target is to beat the index?

I am not sure this question should be asked here or outside the BIRTP blog because I cannot have a good handle on which topic belongs to which forum. If it is not supposed to be here, please move it where it should be. Thanks.

**blast_investor** Mon Apr 11, 2005 11:04 am

qfhe,

very good question.

Comparing to SP&500 index is industry standard practice so that BIRTP does that too.

The method of BIRTP model portfolio is very clear: value investing.

The target or goal of BIRTP model portfolio performance:
average 20% per year compounded annually.

Of course, there is no guarantee that BIRTP can achieve that 20% goal per year average in the future although my past 5 years investment performance beat that 20% mark.

By the way, I do not believe SP&500 will have anywhere near 20% plus average yearly performance in next few years. In another word, 20% per year average performance will most likely beat SP500 index significantly.

**jeep** Mon Apr 11, 2005 11:09 am

20% annual compound will beat sp500 to death in the next at least 3 years.
:wink: