How to turn $10K to $12 Million

You probably have never heard of Walter Schloss, who was another Buffett type of great value investor. Even Buffett called Schloss a "superinvestor" in 1984. He managed a investment fund via Walter & Edwin Schloss Associates. From 1955 to 2002, by Schloss’s estimate, his investments returned 16 percent annually on average after fees, compared with 10 percent for the Standard & Poor’s 500 Index.

 

So what does that mean? Well, for that period of time, say in about 45 years, you could turn your $10,000 of initial investment with Schloss to a draw-dropping amount of $12 millions. All you need to do is to keep your money there and let it compounded at 16% annually.

 

You may think that Schloss must have used some sophistic technique to trade in and out high flying stocks to reach this staggering return. Nope and wrong! Schloss simply bought the highest-quality stocks at the right prices and held them for goods. If the price of those quality stocks fell, he bought more. In his won words: “Basically we like to buy stocks which we feel are undervalued, and then we have to have the guts to buy more when they go down.”  

 

It is a simple but very powerful strategy to become rich with investment.