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Chapter 40: Investment

Chapter 40: Investment

For an amount north of ten million pounds requires significant due diligence on the part of the investor. After all it is an extremely consequential amount that can lead to great success or failure that can have impacts down the road for the company at hand. Therefore Eden is under a lot of pressure to perform under such circumstances. He knew he cannot perform any less than his best. And even at his best, results must be shown.

The client is aiming for a twelve percent return on investment per annum. A twenty percent premium over the traditional ten percent average returns given by a broad market index fund. An index fund is just a basket of stocks that track the stock market’s overall performance. Hence it is not an easy task to ask for an over performance of the stock market as, as much as ninety percent of professional stock managers fail to beat the index over a long period of time of at least five years.

This book was originally published on Royal Road. Check it out there for the real experience.

The client wishes to invest with us for a period of twenty years at least. And while it is a tall order to want to outperform the market indices, Eden is hopeful that it can be done. On his personal portfolio, he has already beaten the USA Nasdaq by over two hundred percent since he was 22. This sort of thing should be a cakewalk for him.

However the world of investments is anything but. Past performance is never an indicator of future performance because anything can happen. From pandemics to recessions to economic melt-ups, any number of external factors and events can and will disrupt the stock markets returns over the long run. That is why it is so important to have a good system in place to research the best companies that will provide optimal returns to shareholders.