Shelby Davis gave an excellent review on how to succeed in investing. "When my father began his investment career in the late 1940s, the Dow Jones Industrial Average stood at roughly 200. In 2006, it crossed 12,000, a sixtyfold increase over a little more than half a century.3 As impressive as that may seem, what I find most striking is that it took a seemingly modest 7% average annual compound to create such staggering growth. Starting from 12,000, if the Dow compounds at the same rate over the next 30 years, then I might have the opportunity to see it cross the 90,000 level in my lifetime. "
This perspective helps me to stay focused on what are likely to be the big drivers of returns over the next 10, 20 or 30 years and not to fret too much about the direction of the Dow's next 10, 100 or even 1,000 point move.
1. The Eighth Wonder of the World
2. Winning with Consistency: Avoiding the Big Loss
3. Managing Business Risk
4. Staying Disciplined About Price
5. Diversifying for Consistency
6. Keeping an Open Mind to the Opportunities Ahead
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This perspective helps me to stay focused on what are likely to be the big drivers of returns over the next 10, 20 or 30 years and not to fret too much about the direction of the Dow's next 10, 100 or even 1,000 point move.
1. The Eighth Wonder of the World
2. Winning with Consistency: Avoiding the Big Loss
3. Managing Business Risk
4. Staying Disciplined About Price
5. Diversifying for Consistency
6. Keeping an Open Mind to the Opportunities Ahead
Read the complete commentary
Also check out:
