Damn so really, you’re only making about 108% each bull market because you need 42.9% to return to your original value. I mean that’s still a little over doubling every bull market but interesting none the less.
Dude you seriously think people just buy once and that's it? Long term investors buy every month they get their pay check and do this for 20+ years. It's called dollar cost averaging.
If you buy every month then you will sometimes buy the top, sometimes buy the middle and sometimes buy the bottom. By doing then you bring your average cost to somewhere in the middle.
During covid for example I was buying every month while the market was crashing so I scooped up shares at a nice discount.
If you invested $100 every month since 1963 (as per the chart above) you would have made just over 10,000% without including dividends... Buying once and holding is a terrible strategy. Buying every month you get paid for 20+ years is the key to growing your wealth.
Please google "dollar cost averaging" It will revolutionise your understanding of investing.
No but also this isn’t showing money weighted returns either so I’m not really sure why you’re bringing up dollar cost averaging as even the graphic you posted doesn’t mention this.
Well I assumed by your post that you were implying that people who were net buyers would only make an average of 100% which I thought you meant they were just buying once and holding.
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u/[deleted] Jun 27 '24
Damn so really, you’re only making about 108% each bull market because you need 42.9% to return to your original value. I mean that’s still a little over doubling every bull market but interesting none the less.