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.
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.