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Now do this experiment with reinvesting dividends instead of just looking at the chart.
by ahelwer 7y ago
Now do this experiment with reinvesting dividends instead of just looking at the chart.
- BozeWolf 7y agoAdditionally you should not spend all your money buying stocks at once. Spreading it across those 14 years would have been quite profitable.
- andreilys 7y ago27% return over 14 years with dividends reinvested (1.86% annualized)[1]. Although when we calculate it with inflation its -7% and -0.5% annualized. Not exactly a compelling argument since you could've made a risk-free return via savings accounts (Wealthfront currently has 2.3%, which I'm sure has been higher in the past). [1] Nov 1999 one year prior to crash, to Nov 2012 https://dqydj.com/sp-500-return-calculator/ https://dqydj.com/sp-500-return-calculator/