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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: BGR who wrote (96797)7/21/2002 3:25:24 PM
From: Skeeter Bug  Read Replies (1) | Respond to of 132070
 
disability? not at all, i was right on saying you lost money long during the biggest mania in history.

apparently, you did quite well before that ;-)

btw, does that up 13% EXCLUDE your employer's contribution? after all, that IS NOT an investment gain and we wouldn't want to manipulate numbers, right?



To: BGR who wrote (96797)7/21/2002 3:38:49 PM
From: Simba  Read Replies (2) | Respond to of 132070
 
BGR:

good to know you are still around of course with lesser money in your 401K. Also looks like you did not make the switch to NASDAQ from SP500 at the top as per your original plan.

However it is difficult to believe your claim of 13% compound annual return based on DCA into SP500 starting in
1994. As per the following chart a constant weekly DCA investment into SP500 including generous dividend of 2% per year starting in Jan 1 1994 will yield only a cumulative nominal return < 15% much less than what DCA into a 6% constant yield investment would have been.

home.att.net

I think either your puts were bailing your out or you are including contributions of your employer as return of the SP500 when it is not. Heck SP500 is now nearly even with 1997 and your were buying all the way from 1997-2002.

You may want to rerun your spread sheet calculations and calculate the return on total DCA investment which included your employer's match and not return on only your contributions. If you still claim 13% clearly your were goosing up your return by other active strategies like market timing, shorts and not the passive DCA into SP500 which you were preaching to this thread.

Just setting the facts straight BGR. Good to hear from you.

Simba