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(1/n) Some interesting facts about volatility and long term investment
Market Volatility in Perspective
source: fisherinvestments.com/en-us/investme…
Market Volatility in Perspective
source: fisherinvestments.com/en-us/investme…
(2/n) In the last century, volatility has been ever-present in the markets. Yet, over this lengthy time period (1935-2018), and after all of that volatility, the S&P 500 has grown by 25,290%.
source: images.go.newyorklife.com/Web/NewYorkLif…
source: images.go.newyorklife.com/Web/NewYorkLif…
(3/n) Any short-term volatility disappears with a long-term view. Daily price swings can feel like a roller coaster. But if you take a step back and look at the big picture, this volatility is just a blip on the radar.
source: images.go.newyorklife.com/Web/NewYorkLif…
source: images.go.newyorklife.com/Web/NewYorkLif…
(4/n) Study by Joe Greenblatt.
From 2000-2010.
Fund performance: 18% per year
Average investor performance: -11% per year
47% of 10-year best track record performance managers spent at least 3 of those 10 years in the bottom decile...
From 2000-2010.
Fund performance: 18% per year
Average investor performance: -11% per year
47% of 10-year best track record performance managers spent at least 3 of those 10 years in the bottom decile...
(5/n) Buffett vs S&P (period 1977-2016) source: @jposhaughnessy
Considering 1-year period, Buffett had a performance better than the S&P 73% of the time. When you look at a rolling 3-year period, this number increases to 89%, as shown by the slide below.
Considering 1-year period, Buffett had a performance better than the S&P 73% of the time. When you look at a rolling 3-year period, this number increases to 89%, as shown by the slide below.
(6/n) Brian Chesky (co-founder of Airbnb): The best advice Buffett ever gave Jeff Bezos
"... nobody wants to get rich slow"
"... nobody wants to get rich slow"
(7/n) "... a particular outcome may not be indicative of the quality of the decision... Over the long haul, however, good decisions portend favorable outcomes even if you will be wrong from time to time." @mjmauboussin
timelessinvestor.com/wp-content/upl…
timelessinvestor.com/wp-content/upl…
(8/n) Lastly, words of wisdom by Buffett.
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
“Our favorite holding period is forever.”
“An investor should act as though he had a lifetime decision card with just twenty punches on it.”
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
“Our favorite holding period is forever.”
“An investor should act as though he had a lifetime decision card with just twenty punches on it.”
(9/n) Time is the friend of the wonderful company, the enemy of the mediocre.”
"You can't produce a baby in one month by getting nine women pregnant."
"Buy a stock the way you would buy a house. Understand and like it such that you'd be content to own it in the absence of any mkt
"You can't produce a baby in one month by getting nine women pregnant."
"Buy a stock the way you would buy a house. Understand and like it such that you'd be content to own it in the absence of any mkt
(10/n) “Nobody buys a farm based on whether they think it’s going to rain next year. They buy it because they think it’s a good investment over 10 or 20 years."
Forgot to include this one.
fool.co.uk/investing/2016…
fool.co.uk/investing/2016…
