Why good poker players make good investors.

[DesertCat]

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The 15% growth rate is a long term goal based on current inflation rates. If you can maintain significantly stronger growth rates over 10 plus years (at the current average inflation rate), I think a lot of people would love to know the secret.

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The secret is a small portfolio. A value investor managing less than $10M has many opportunities that professionals can't take advantage of. Fifteen percent should be the low end of your expectation if you really understand value investing, have a smallish portfolio, and work at it.

But if you want to buy mutual or index funds, note that 15% is a very high expectation. Buffet has said the markets long term return is going to be around 7-8% for the next decade or so, given current pe ratios. He first said this a couple years ago, but I don't think much has changed.