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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Nikole Wollerstein who wrote (53882)	6/30/2001 8:09:59 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Here's an interesting phenomenon. I was talking to a buddy of mine who said he had done really well over the last five years. Then he proceeded to tell me that his return was as follows (can't remember exact #s, but close enough): 20%, 5%, 30%, 80%, -75%. Then he told me that his average annual return was 12%, which of course he got by adding the five numbers and dividing by 5. I was so bowled over, I couldn't help but laugh, despite his ignorance being pitiful and fairly commonplace. The fact is that he has only 45% of the money he originally invested, but he thinks he's made money. What blows me away is that many people are fooled into this type of thinking and of course the analysts out there don't dissuade people from thinking in this manner. Anyway, my point is most people who invest on their own, think they are doing alot better than they really are. On the surface, my friends gains looked impressive until that last year. He would have been better off in bonds.