The first question you need to ask is “What do you define as a high percentage return from the stock market?” Let’s have a look at the average returns on the main investment classes
- Shares: 14.2% per annum gross return
- Property: 13.8% per annum gross return
- Fixed Interest: 8.3% per annum gross return
- Cash: 6.1% per annum gross return
Does this mean that we should only invest in shares and that we should be happy with 14.2% per year? Imagine if you could find a way to increase these returns above the stock indexes.
How to Get High Percentage Returns From the Stock Market?
If you go to a financial planner and ask for advice I can guarantee you that you will not end up with a high percentage return. You may wind up paying a high percentage fee but it is unlikely that your stock portfolio will outperform the market. To bigger returns you need to expand your investment knowledge. the Markowitz model are numerous strategies that will enable huge potential returns without excessive risk.
Is it possible to outperform the market?
Yes — just ask Warren Buffet or anyone who has invested with him
How can I outperform the market?
Let’s have a look at two so called ‘secret investment strategies’ that will help your stock trading no end.
- Renting Shares: Did you know that you can actually rent out your shares? Just like you would a rental property only you will get paid roughly 2-10% per month. That turns into 24-120% per year return. If your stock investments gave you that sort of a return every year how would you feel? The obvious question is how much risk is involved? This strategy is actually less risky than just buying shares.
- Buying Insurance: Did you know that you can insure your shares? Yes just like you would your car. Why didn’t your broker tell you about this before the recent share market crash? That’s a very good question and one that you probably need to ask him. My portfolio was not only insured but I actually made more money during the crash than in the 3 years prior.
So if you really want to learn how to get high percentage returns from the stock market you need to expand your investment knowledge. Don’t leave the most important decision of your life up to someone else — Take control of your own future.