What is Goodwoods expectation for rate of return?
To avoid any potential misunderstandings, we want to stress to you that we have no idea what the Fund’s rate of return in any one-year period may be. Stock investing does not lend itself to accurate predictions of return. What should be expected is to earn a return over the long run that is above the risk free rate of return (the risk free rate of return is commonly defined as the return of treasury bills issued by the Federal Government) thus justifying the extra risk incurred. Our hope is to average a 20% plus per annum, not every year – just average, which, if it is achieved, will be a mix of good years and bad years. And, to be clear, we are shooting for a “good year” every year.
