Always Focus on the Market’s Long-Term Performance: S&P 500 Example

Equity markets always go through periods of booms and busts. During bull markets, stocks can earn astonishing returns and of course when markets turn the other way losses can be shocking. Sometimes the volatility on both ways can be gut wrenching. For stock investors the key attribute for success is to side out the volatility …

Continue reading ‘Always Focus on the Market’s Long-Term Performance: S&P 500 Example’ »

Warren Buffet’s Berkshire Hathaway Has Underperformed in Recent Decades

Warren Buffet is celebrated as one of the greatest investors of all time. His company Berkshire Hathaway’s stock has earned investors astronomical returns over the years. However I always thought that investors’ and media’s obsession with his greatness is overblown. A recent article I came across confirms my belief. According to the piece, Warren Buffet …

Continue reading ‘Warren Buffet’s Berkshire Hathaway Has Underperformed in Recent Decades’ »

How Do Assets Perform 1 Year After CD Rates Peak?

Interest rates on Certificate of Deposits(CDs) in banks have soared this year. From virtually paying nothing a few years ago CDs have become the asset to own by any investor in this high interest rate times. For instance, the rate on 1-year CDs have jumped to as high as 5.67% according to Bankrate data. With …

Continue reading ‘How Do Assets Perform 1 Year After CD Rates Peak?’ »

Two S&P 500 Index Return Charts on the Importance of Dividends

Dividends play an important role in the total return of an equity investment. Dividend’s role is especially powerful over the long-term due to the power of compounding. The following two charts show how much dividends are critical using the example of the S&P 500 index. I have posted these charts before but these are the …

Continue reading ‘Two S&P 500 Index Return Charts on the Importance of Dividends’ »