10X Investments (2024)

FAQs

What is the 10X rule in investing? ›

Today, I'd like to chat about the 10 x Rule of investing. While it is true that angel investors (like our dragons) typically seek 10 times their money back over 3-5 years that isn't the source of the "10x rule". The 10x rule means that in order to gain market traction a product must be exponentially better.

The 10X Investment Consumption Rule simply states that before you buy any product or service you don't need, you must first make an investment return equal to at least 10X the cost of such product or service.

By saving the right amount and prioritizing growth when your investment time horizon is long, 10x growth is surprisingly attainable over a 20-year period.

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule.

The 10X Rule for success is: set goals that are 10 times bigger than the average, then work 10 times harder than average to achieve them. Cardone refers to the latter as taking “massive” action. It takes extraordinary thinking and effort to achieve extraordinary success.

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

However, one of the most important benefits of this rule is that you can keep more of your income and save. The 20/10 rule follows the logic that no more than 20% of your annual net income should be spent on consumer debt and no more than 10% of your monthly net income should be used to pay debt repayments.

What is the 5 rule in money? ›

The 5% rule says as an investor, you should not invest more than 5% of your total portfolio in any one option alone. This simple technique will ensure you have a balanced portfolio.

Definition and explanation of the 7/10 rule

In other words, the 7/10 rule is a time and interest-based investment rule. For example, you invest ₹100 at 10%, it will take 7 years for it to touch ₹200. Here, 7 is the time and 10% is the interest rate.

As a rate of return, long-term mutual funds can offer rates between 12% and 15% per year. With these mutual funds, it may take between 5 and 6 years to double your money.

Overall, the profitability of 10x Genomics is poor, with a GuruFocus rank of 3 out of 10.

One of those tools is known as the Rule 72. For example, let's say you have saved $50,000 and your 401(k) holdings historically has a rate of return of 8%. 72 divided by 8 equals 9 years until your investment is estimated to double to $100,000.

For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

Obviously, the way to calculate a return multiple is to divide the amount returned from an investment by the dollars invested. If I invested $10M in a company and got back $100M, that's a 10X return.

The 7/10 rule in investing is a straightforward method to calculate the fair value of a company's stock. The rule states that a company's stock price should either be seven times its earnings before interest, taxes, depreciation, and amortization (EBITDA) or 10 times its operating earnings per share.

As per the original budgeting rule, you must dedicate 20% of your income to savings & investments. However, if you have limited debt (lower than 20% of your salary) and limited wants (lower than 10% of your salary), you can invest 20-40% of your income.