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What's the craziest statistic about personal finance?
It is hard to shock me these days. However, one of Warren Buffett’s stories he told on CNBC really made me stand up and take notice. In 1941, the world was in a gloomy place. We think that we are living in unprecedented times today, but back then was much more extraordinary. Hitler was winning the war, which was the second world war in a generation. Large parts of Europe and the world were in disarray. The U.S. didn’t even come into the war until the Japanese attacked Pearl Harbor on December 7, 1941: The future looked bleak. The future looked almost as bleak during times like the Cuban Missile Crisis almost 20 years later. Yet $10,000 invested in the S&P500 in 1941 would be worth over $50m today. — warren buffett $10,000 invested in S&P 500 in 1941. Now sure you have to account for Inflation. The nominal 10% yearly returns are cut to 6.7% adjusted for that The returns have varied. So of the years and decades after 1941 have been bad for stocks, like 65–82 and 2000–2010. Some years, like the 1990s and 2009–2020, have been much better You need to reinvest the dividends to get those returns Only people who created generational wealth would have gotten those returns. Nevertheless, it shows the power of investing for decades, and not caring about what happens in the middle. It also shows that we have always lived in extraordinary times in some ways, so it is best to ignore short-term news like market crashes, virus, elections and so on.
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What's the craziest statistic about personal finance?
It is hard to shock me these days. However, one of Warren Buffett’s stories he told on CNBC really made me stand up and take notice. In 1941, the world was in a gloomy place. We think that we are living in unprecedented times today, but back then was much more extraordinary. Hitler was winning the war, which was the second world war in a generation. Large parts of Europe and the world were in disarray. The U.S. didn’t even come into the war until the Japanese attacked Pearl Harbor on December 7, 1941: The future looked bleak. The future looked almost as bleak during times like the Cuban Missile Crisis almost 20 years later. Yet $10,000 invested in the S&P500 in 1941 would be worth over $50m today. — warren buffett $10,000 invested in S&P 500 in 1941. Now sure you have to account for Inflation. The nominal 10% yearly returns are cut to 6.7% adjusted for that The returns have varied. So of the years and decades after 1941 have been bad for stocks, like 65–82 and 2000–2010. Some years, like the 1990s and 2009–2020, have been much better You need to reinvest the dividends to get those returns Only people who created generational wealth would have gotten those returns. Nevertheless, it shows the power of investing for decades, and not caring about what happens in the middle. It also shows that we have always lived in extraordinary times in some ways, so it is best to ignore short-term news like market crashes, virus, elections and so on.
fontsforinstagram.org/whats-the-craziest-statistic-about-...