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Even with the recent troubles, the compound return is phenomenal.
"The 75percent-25percent-25percentd a compound return of 12.3percentt.
His investors will have made, net of fees, a healthy annual compound return of 14 percent.
"Over the last 15 years, the 50-50 Couch Potato provided an annualized compound return of 10.96 percent," Mr. Farrell writes.
When you came back, rested and relaxed, you learned that the stock market had generated a compound return of about 10percentt while you were away.
In part this is a measure of success: since 1983, when Mr Hatsopoulos put his strategy into practice, Thermo's compound return to shareholders has averaged 28% a year.
Similar(41)
They involve interest rates, for example, or compound returns.
In arithmetic terms, however, your average return (+100% and -50%) is 25%.As Mr White points out, this makes a lot of difference to compound returns over the long run.
Such is the power of compound returns.
The attractions include a chance to save regularly and to enjoy years of compound returns without paying a dime in taxes.
Volatility is the enemy of long-term compound returns, says Lee Partridge, the chief investment officer of Salient Partners, a Houston firm with $17 billion under management.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com