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Now do this experiment with reinvesting dividends instead of just looking at the chart.


27% 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/


Additionally you should not spend all your money buying stocks at once. Spreading it across those 14 years would have been quite profitable.




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