Comments on: the double digit myth http://www.bripblap.com/2008/the-double-digit-myth/ wealth, work and life success Sat, 13 Mar 2010 06:02:31 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: treadmill workouts http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-25057 treadmill workouts Fri, 15 Aug 2008 20:06:40 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-25057 I agree with you - the explosive grows era has passed I agree with you – the explosive grows era has passed

]]> By: Chad @ Sentient Money http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-19572 Chad @ Sentient Money Thu, 26 Jun 2008 13:45:11 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-19572 This is exactly why I have no money in index funds. They are a trap. If everyone does something, it can't be that great, because everyone can't be rich. This is exactly why I have no money in index funds. They are a trap. If everyone does something, it can’t be that great, because everyone can’t be rich.

]]> By: AJC @ 7million7years http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-15025 AJC @ 7million7years Wed, 23 Apr 2008 22:33:59 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-15025 You're just peeved because you can't invest in BRK-A or -B because they don't pay dividends :) Warren takes the (perhaps rather) presumptive view the he can invest the dividends better than we can. AJC. You’re just peeved because you can’t invest in BRK-A or -B because they don’t pay dividends :) Warren takes the (perhaps rather) presumptive view the he can invest the dividends better than we can. AJC.

]]> By: FFB http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-15000 FFB Wed, 23 Apr 2008 19:22:28 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-15000 Maybe a little off subject but not far off...in an economics class I'm taking they talked about the GDP growth rate for the US from 1870-2000. The average GDP growth rate in that period was about 2% per year. 2% growth for the largest economy. 2% made our economy pretty large. Maybe a little off subject but not far off…in an economics class I’m taking they talked about the GDP growth rate for the US from 1870-2000. The average GDP growth rate in that period was about 2% per year. 2% growth for the largest economy. 2% made our economy pretty large.

]]> By: Dividend Growth Investor http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-14756 Dividend Growth Investor Tue, 22 Apr 2008 14:59:13 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-14756 drelfei, It does look like Buffet does not account for dividends in his forecasts of the 5.3 % return. I read a research paper, where they calculated the value of Dow Jones Industrials Average with dividends being reinvested. They found out that if you started in 1928 and reinvested all dividends untill 2000, the value of the Dow would have been around 250,000 by 1999 yearend. Pretty nice, compared to the 11,750 high that Dow hit in 2000... Also, do not believe everything that Buffet tells you. Buffet is a market timer. HE does sell stocks occasioanly. He does trade in futures ( currencies). He does use derivatives in his insurance businesses ( he also sold some long-term put options contracts (20 years or more) ) If you read his early partnership letters from the 1950's and 1960's , you will see that he always forecasted below average stock index returns. But he also mentions that he is not in the business of forecasting ( lucky for him) but in the business of buying good solid companies. drelfei,

It does look like Buffet does not account for dividends in his forecasts of the 5.3 % return. I read a research paper, where they calculated the value of Dow Jones Industrials Average with dividends being reinvested. They found out that if you started in 1928 and reinvested all dividends untill 2000, the value of the Dow would have been around 250,000 by 1999 yearend. Pretty nice, compared to the 11,750 high that Dow hit in 2000…

Also, do not believe everything that Buffet tells you. Buffet is a market timer. HE does sell stocks occasioanly. He does trade in futures ( currencies). He does use derivatives in his insurance businesses ( he also sold some long-term put options contracts (20 years or more) )
If you read his early partnership letters from the 1950’s and 1960’s , you will see that he always forecasted below average stock index returns.
But he also mentions that he is not in the business of forecasting ( lucky for him) but in the business of buying good solid companies.

]]> By: drelfei http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-11868 drelfei Mon, 17 Mar 2008 15:43:47 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-11868 Add to the 5.3% Average Dividend Yield (%) of All Dow Jones Industrial Average Stocks 3.13 This is not included in the figures. With dividend reinvestment, not looking at 15% tax on dividends its not that bleak. Add to the 5.3%

Average Dividend Yield (%) of
All Dow Jones Industrial Average Stocks 3.13

This is not included in the figures.
With dividend reinvestment, not looking at 15% tax on dividends its not that bleak.

]]> By: 2million http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-11779 2million Thu, 13 Mar 2008 03:49:09 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-11779 I have been struggling with this for several years. I am inclined to "own" companies and not invest in index funds. However I appreciate that ensuring you keep up with the market is at times better than beating the market every once and awhile. Someday I hope to be an investor like Buffett -- until then I need a heavier concentration in index funds. I have been struggling with this for several years. I am inclined to “own” companies and not invest in index funds. However I appreciate that ensuring you keep up with the market is at times better than beating the market every once and awhile. Someday I hope to be an investor like Buffett — until then I need a heavier concentration in index funds.

]]> By: Carnival of Personal Finance #143 - Oh Canada Edition http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-11667 Carnival of Personal Finance #143 - Oh Canada Edition Mon, 10 Mar 2008 02:13:52 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-11667 [...] Brip Blap says that the days of double digit equity returns are over. [...] [...] Brip Blap says that the days of double digit equity returns are over. [...]

]]> By: Weekend Linkage - March 9, 2008 | The Suns Financial Diary | A Personal Finance Blog on Saving and Investing http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-11651 Weekend Linkage - March 9, 2008 | The Suns Financial Diary | A Personal Finance Blog on Saving and Investing Sun, 09 Mar 2008 18:43:11 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-11651 [...] at Birp Blap looked at the double-digit myth. Is that, a double-digital annual return, you are looking for from you stock investments as [...] [...] at Birp Blap looked at the double-digit myth. Is that, a double-digital annual return, you are looking for from you stock investments as [...]

]]> By: Weekly Dividend Investing Roundup - March 7, 2008 » The Dividend Guy Blog http://www.bripblap.com/2008/the-double-digit-myth/comment-page-1/#comment-11553 Weekly Dividend Investing Roundup - March 7, 2008 » The Dividend Guy Blog Fri, 07 Mar 2008 15:34:17 +0000 http://www.bripblap.com/2008/the-double-digit-myth/#comment-11553 [...] Brip wrote an interesting article on the double digit myth. [...] [...] Brip wrote an interesting article on the double digit myth. [...]

]]>