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Great investors of the last half century

Great investors of the last half century

Josh Peteet

"In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497."
— Warren Buffett (this represents an increase of 17,320 percent)

Great investors build wealth over the long haul. As one illustration, over the period from 1926 through 2015, the annualized total return for large-cap stocks was approximately 10 percent, which produced remarkable growth when compounded. The total return for the S&P 500 (with dividends reinvested) applied to $10,000 beginning in 1970, results in more than $400,000 at the end of 2005 and $800,000 at the end of 2015. While, of course, future stock performance may not match these past results and investors always face the possibility of loss, a 19-year-old who had put away $10,000 on the last day of 1969 and earned the S&P return over the period of 1970 through 2015 would have more than $800,000 at age 65 with no additional investment after 1969. Why, then, do so many investors fail to take advantage of this potential?

Pause for poetry
Blogs

Pause for poetry

Susan Arico

A few months ago I was involved in a fascinating work project at the intersection of faith and culture. Part of the study touched on reading habits among modern American adults. Most people today, surprise surprise, get their info from the internet instead of books. Much more. The hours required to read a book can seem almost outlandish to the modern adult. "Reading a book's a big investment," one said.

I spend as much time on the Web as anyone and follow the Google rabbit trail where it leads with the best of 'em. Even still, I feel sad for books. Sad for a world where books sit dustily on the shelf, and for the time commitment folks can't spare them. From birth I've been a lover of words, and there's a wistful part of me that wants more for them than the world today can give them. More sitting with them, relishing them, being moved by them. It's hard to sit with words when they come to you off a computer screen. They can collide with the deep parts of your soul from the screen, but it's less likely.

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