Posts Tagged ‘returns’

“No matter how skilled you are as an investor, upping your savings rate is more powerful to your wealth than either increasing your income or increasing your investment returns.  That’s because it’s a one-two punch… you increase what you have to invest, while decreasing what you spend.  You also learn how to live longer on less money….  Remember that ultimately, how much you save will be the difference between a lifetime of poverty… or one of wealth.” -David Eifrig

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“Most people assume that if you know about investing, you must also know about economics, which is a related discipline.  But that’s completely untrue.  It’s analogous to thinking that someone who knows how to drive a car also knows how one works.  Economics is the study of how men go about producing and consuming; investing is the practice of allocating capital for maximum returns.” -Doug Casey

“Research firm Dalbar publishes an annual study on investor behavior called the Quantitative Analysis of Investor Behavior (“QAIB”).  Every year since 1994, the QAIB has compared stock market returns over the previous decades with returns earned by real investors.  The result is always the same: The market beats the investor.

For the 30 years ended December 31, 2015, the S&P 500 returned 10.4% per year, on average.  Equity mutual fund investors earned an average return of just 3.7% per year.

To make plenty of money in stocks, you must behave better than the vast herd of investors.  A single behavior – refusing to sell at market bottoms – would have multiplied profits nearly tenfold.” -Dan Ferris

No matter how skilled you are as an investor, upping your savings rate is more powerful to your wealth than either increasing your income or increasing your investment returns.  The best part is that it doesn’t really matter how much you make.  It only matters how much you save.  That’s the part most people don’t appreciate.” -David Eifrig

More Returns

Posted: February 3, 2015 in Money Matters
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“Compound returns are the money you make off the money you make. And the more money you make, the more money your money makes off the money your money makes.” -David Eifrig

“One of the greatest misconceptions in finance is the idea that you need to take more risk to earn higher returns.  The reality is the less risk you take, the more money you make.” -Tom Dyson