Stocks For Long Run
— Investment, Learning, Graphs — 1 min read
By Jeremy Siegel, (From 'Stocks for Long Run')
Instead of a long blog post, All you need to understand are these investing graphs on long term returns..
Another graph of total nominal returns(not inflation adjusted) and dividends reinvested in the same asset overtime.
Even a great depression of 1929, which caused a generation of investors shun stocks, appreas as a mere blip in the total stock return index.
Keen eye will see that a difference of 1.5% compunded returns for this period is a difference between 700k and 13.5million that's why compunding is the 8th wonder!
If you still want to understand more..hear it from the horse's mouth.. Stocks for Long Run
Next why focus our fund on Asia In stock market this old adage applies, If you want to catch fish. fish where the fish are. Here is the GDP forecast as far as 2100 by IMF, OECD Economic outlook and by UN. OECD collects lot of data and makes predictions based on that but forecast is always a guesstimate, though its based on data, there are lot assumptions of how the world is going to be, based on what it is now, which is never precise but roughly right...So we should take it with grain of salt.
Any forecasts as Mr Keynes said It is better to be roughly right than precisely wrong