O'Reilly logo

The Rules of Wealth, 3rd Edition by Richard Templar

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

RULE 80

Know when to let go of investments

I have my own little calculation which I am happy to pass on to you. I learned it from an Internet site a while back and it has stood me in good stead. Basically for an investment to work for me means I am generally looking for a return that will double my money in five years. In a recession I might extend that to, maybe, seven years – of course the higher/faster the return, the higher the risk.

The calculation I use is to divide the interest rate into 72 to find out how long it will take me to double my money. For example, if the interest rate on a particular investment is 6 per cent, then it will take me 12 years (72 ÷ 6 = 12) to double my money. Too long for me. So I would be looking for an interest ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required