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It's been 400 years since stock market is open in Netherlands. If there was a SINGLE logic which kept > 20% for THE 400 YEARS, then the trader takes ALL THE ASSET IN THE WORLD. Try 1.2^400 which is > than current world population. Buffet and Gates should be broke now. Therefore there was no...

From 100K to 100M, the ratio is 1000 times. 1) If you find(invent) a trading logic of annual 20% compounded, then it will take 38 years by 1.2^38 = 1020.675 2) With annual 15% compounded, it takes roughly 50 years by 1.15^50 = 1083.657. Please recall that traders such as Buffets kept annual...

I think the edge stands for something like as follows. In the Roulette in casino, we lose 49 to 51, which means we lose 2% to casino in EVERY HAND. Is it? Likewise, if we have an edge in trading like 10% IN EVERY YEAR (average), then he SHOULD be a consistently winning trader in the long...

Let us explain "consistently" more precisely. There is many types of "consistent" trading logic. Also there is yearly tax in Federal 1040. Probably there is no sugnificant meaning in return rate less than a year. I would say at least three year is necessary. Five is better and ten is...

For a shorter example, for lifetime of 50 years (from 30 to 80), note that 1) 1.06^50 = 18.42015 2) 1.12^50 = 289.0022 3) 1.2^50 = 9100.438 times where 3) is same as Buffett record (yearly compounded rate) claiming (TRUE???) at http://www.berkshirehathaway.com/letters/2017ltr.pdf PS) the...

I honestly believe that there might be a family to keep CONTINUOUSLY grandfather's trading logic. For example, Rothschild does NOT invest real estate but only invest mostly in national bond(most secure), as well as Catholic. Tell me if there is my error. Mr. Buffett in Birkshire may not able...

PS2) Furthermore, I heard that there was an average of roughly 3% inflation for roughly 100 years, after Federal Reserve at 1913.

Note that modern stock market was running 400 years from Netherlands. For example, suppose we (people in the world) have all equal asset evenly as much as 100 at 400 years ago. Now suppose one trader at 400 years ago find a way to conquer ONLY 6% of the neighbor's asset EVERY YEAR. (100, 106...

Of course. Furthermore I don't believe the 84% logic is sustainable too. It is because no trader did keep annual 84% long time.

You can make more than 84% per year. Go to casino BJ or cardroom poker to make it double in a few minutes.

Of course, Buffet showed his performance for more than 50 years (from 1965) clearly. His is saying roughly annual 20% compounded. However index is roughly annual 10% as shown is http://www.berkshirehathaway.com/letters/2017ltr.pdf Actually anyone who was in NY market (SnP500) with ETF should...

Or for short time like only 50 years (from 30 to 80), it becomes 1.14^50 = 700.233 times. For example, one with saving of 100K at 30 should be as rich as 7000K at 80. Tell me if there is.

If you are confident to show annual 14% , then you may not have to find other trading logic. However, they will NOT show the good logic to you if it is REALLY annual 14%. Stock market was running for the last 400 years. If there exist such good trading logic, then someone (some trader and...

How about the performance for the last 5 years and 10 years?

Agreed. That is why most broker in most countries lend money to traders with interest of 8% to 12%. My guess is good and profitable traders cannot outperform the above annual 10% historically, which many brokers learned long time(400 years after Netherland).

Quite possibly, my issue is out of OP's scalability, which I do NOT understand yet. Sorry for that if so.

1) Please refer Buffet's site at http://www.berkshirehathaway.com/letters/2017ltr.pdf if you believe it is true. It says annual compounded return of 20.9% from 1965 to 2017 (roughly 52 years) Note that in some years he could NOT follow SnP500. (cannot outperform index) I don't believe Buffet's...

I didn't read long story below, also my English is short What I am saying is annual 80% compounded is absurd and if one keep 20% like Buffets' 50-year record. Then it may makes sense. Stock market began in Holland 400 years ago, if some one(family) kept 20% in average during the 400 years...

It is free for you to choose believing or not believing. If you cannot believe it, then tell me yours.

Would you tell me more precisely what you say? My English is short.