One does not have to be a Ph.D. in higher mathematics to understand the 1929-1935 comparative investment results stated below.
Investment
VehicleInvestment
DateAmountInvestment
Value @ Dec. 1935
| DJIA |
Oct - 1929 |
$10,000 |
$3,600 |
| DJUA |
Oct - 1929 |
$10,000 |
$2,100 |
| Homestake Mining |
Oct - 1929 |
$10,000 |
$62,000 |
| Note: For simplification cash dividends not taken into account |
It is a nightmarish thought for the Buy-N-Hold advocates to take careful note that it took the next 25 years for a 1929 investment to break even! Not even Job of the Bible would have had the patience to wait.
RUF
PS: With dividends Homestake far exceeded a 10 bagger!
