Numbers Primer

Our numbers primer helps investors understand the impact of positive and negative returns.

Albert Einstein

called compound interest the 8th wonder of the world.
When looking at different rates of return, we understand this ‘wonder’ of compounding.

Annualized and Total Returns Multiplier on Original $
Return 10 Years 20 Years 30 Years 10 Years 20 Years 30 Years
5% 63% 165% 332% 1.63 2.65 4.32
10% 159% 573% 1,645% 2.59 6.73 17.45
12% 211% 865% 2,896% 3.11 9.65 29.96
15% 405% 1,537% 6,521% 4.05 16.37 66.21

Phil Fisher

The investment objective of growth is not just to make gains but to avoid losses.

Ben Graham

There are two rules of investing. Rule #1: Don’t lose. Rule #2: Don’t forget Rule #1.

When looking at various levels of declines, we respect Graham’s and Fisher’s attitude about losses.

$100,000 Beginning Investment Example

% of Decline End value % Needed to Recoup Loss % of Decline End value % Needed to Recoup Loss
10% $90,000 11% 40% $60,000 67%
20% $80,000 25% 60% $40,000 150%
30% $70,000 43% 80% $20,000 400%

Our view is that a growth and value-focused strategy is 'best practice' investing.

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Loss and return data are for information purposes only. It does not imply the achievability of any specific rate of return. Past performance is not indicative of future results. All investments involve risk and potential loss.

We want our clients to know their investments and the reasons why they own them.