Dow Jones index in perspective

Dow Jones index in perspective

September 05, 2022

With the recent market uncertainty, it is sometimes difficult to keep a long-term perspective and not concentrate on the short-term outcomes.

According to Warren Buffet, during the 20th Century: 1900-2000, 

"The Dow advanced from 66 to 11,497.

This gain, though it appears huge, shrinks to 5.3 percent when compounded annually.

.... For investors to merely match that 5.3 percent market-value gain,

the Dow – recently below 13,000" 

(Our note: he wrote it in 2009, it is around 32,000 as of mid-2022) –

"Would need to close at about 2,000,000 on December 31, 2099!"

 

Unbelievable? We are a bit over 1/5th of the way there.