I was having lunch with one of my super successful and affluent friends and she astounded me with one of her comments.  She said she doesn’t even like to open her investment statements when she gets them in the mail.

She told me about how she would get them in the mail, put them on her desk at home, and walk past them over and over without opening them.  She didn’t open them because if her investments had gone down that month, it made her almost sick to her stomach.  She said that she would eventually have to open them because she was so curious, despite finding herself disappointed again and again when there were down months.  She even went as far as to tell her financial adviser to only send them quarterly.

Now, here is a very sophisticated and wealthy businesswoman who hates opening her investment statements.  I don’t think she is alone with those feelings about her investments.  Making and managing investment decisions is usually a painful process for most people.

Just look at how my friend handles her investment decisions compared to her business decisions.  She will make extremely quick, high-dollar decisions for her business all day long and not blink an eye.  Yet, when it comes to just opening her investment statements that are professionally managed, you would think someone asked her to crawl on her hands and knees across broken glass.

What would happen, if instead, you were able to open your investment statements and find a more consistent return?  Then my friend wouldn’t have to play those mental games with herself.  That is exactly how we have structured our investment opportunities since 2009.  Our Buy and Hold Fund, 1031 Exchanges, and fully-managed turn-key rentals are all based on the same foundation: consistent net returns.

The opposite of consistent net returns are volatile returns – big swings up and down in your investment – like in the stock market.  Volatile returns will kill your return over time.  Take a look at the chart below.  If you invested $100,000 at a consistent 10% return, you could double your money in about seven years.  However, if that investment were to take a 25% loss in value the first year, you would need to achieve a 17.8% return for the next six years in a row to double your money by year 7 — a feat that would be impossible to pull off.

One of the reasons it requires such a large return to double your initial investment over the next six years is that your $100,000 investment has a remaining value of only $75,000.  Not only do you have to play “catch up,” but you have to do it with far less money. 

Some people may think the investments we offer at Hughes Capital are “boring,” but I think that’s a compliment.  Our returns are reasonably predictable, and we’d rather be bored than be surprised by huge swings in our returns.  It is much less stressful knowing when you open your monthly statements it won’t be a volatile mess!

I was having lunch with one of my super successful and affluent friends and she astounded me with one of her comments.  She said she doesn’t even like to open her investment statements when she gets them in the mail.

She told me about how she would get them in the mail, put them on her desk at home, and walk past them over and over without opening them.  She didn’t open them because if her investments had gone down that month, it made her almost sick to her stomach.  She said that she would eventually have to open them because she was so curious, despite finding herself disappointed again and again when there were down months.  She even went as far as to tell her financial adviser to only send them quarterly.

Now, here is a very sophisticated and wealthy businesswoman who hates opening her investment statements.  I don’t think she is alone with those feelings about her investments.  Making and managing investment decisions is usually a painful process for most people.

Just look at how my friend handles her investment decisions compared to her business decisions.  She will make extremely quick, high-dollar decisions for her business all day long and not blink an eye.  Yet, when it comes to just opening her investment statements that are professionally managed, you would think someone asked her to crawl on her hands and knees across broken glass.

What would happen, if instead, you were able to open your investment statements and find a more consistent return?  Then my friend wouldn’t have to play those mental games with herself.  That is exactly how we have structured our investment opportunities since 2009.  Our Buy and Hold Fund, 1031 Exchanges, and fully-managed turn-key rentals are all based on the same foundation: consistent net returns.

The opposite of consistent net returns are volatile returns – big swings up and down in your investment – like in the stock market.  Volatile returns will kill your return over time.  Take a look at the chart below.  If you invested $100,000 at a consistent 10% return, you could double your money in about seven years.  However, if that investment were to take a 25% loss in value the first year, you would need to achieve a 17.8% return for the next six years in a row to double your money by year 7 — a feat that would be impossible to pull off.

One of the reasons it requires such a large return to double your initial investment over the next six years is that your $100,000 investment has a remaining value of only $75,000.  Not only do you have to play “catch up,” but you have to do it with far less money. 

Some people may think the investments we offer at Hughes Capital are “boring,” but I think that’s a compliment.  Our returns are reasonably predictable, and we’d rather be bored than be surprised by huge swings in our returns.  It is much less stressful knowing when you open your monthly statements it won’t be a volatile mess!