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Stompy · 07-06-2005, 07:32 PM

The book doesn't account for splits.

What it does is start off by saying, "Invest in the s&p 500 and you'll get, on average, and 11% return each year. Over 20 years that's $80k."

Then it goes on to explain how one should aim their long term investments into stocks (by using common sense, of course) and try to beat the 11% gain each year by the S&P.

It doesn't mention anything about splits, but it does keep explaining how your growth over the long term is due to compounding. Nor does it account for "when the stocks grow, sell them and buy more of the others at lower costs." It just assumes you have a chunk of money and when you invest it, you'll forget about it for x amount of years. Of course, you also need to keep up to date on the quarterly/annual financial reports of each company to make sure they aren't sucking.

But yeah, they're definitely talking about compounding, not splits or whatever else.

I really don't get where this money is coming from.

07-06-2005, 07:32 PM	#3 (permalink)
Stompy Banned from being Banned Location: Donkey	The book doesn't account for splits. What it does is start off by saying, "Invest in the s&p 500 and you'll get, on average, and 11% return each year. Over 20 years that's $80k." Then it goes on to explain how one should aim their long term investments into stocks (by using common sense, of course) and try to beat the 11% gain each year by the S&P. It doesn't mention anything about splits, but it does keep explaining how your growth over the long term is due to compounding. Nor does it account for "when the stocks grow, sell them and buy more of the others at lower costs." It just assumes you have a chunk of money and when you invest it, you'll forget about it for x amount of years. Of course, you also need to keep up to date on the quarterly/annual financial reports of each company to make sure they aren't sucking. But yeah, they're definitely talking about compounding, not splits or whatever else. I really don't get where this money is coming from. __________________ I love lamp.