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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (2212)	11/21/1998 10:23:00 AM
From: Investor2	Read Replies (1) \| Respond to of 15132

Thanks for the data, Justa. This is what the table looks like now: S&P 500 % Funds Annual Outperformed by Year Gain Index 1972 19.0% 85 1973 -14.7% 84 1974 -26.5% 47 1975 37.2% 71 1976 23.8% 56 1977 -7.2% 15 1978 6.5% 31 1979 18.4% 20 1980 32.4% 53 1981 -4.9% 37 1982 21.5% 38 1983 22.5% 60 1984 6.3% 78 1985 31.8% 74 1986 18.7% 76 1987 5.3% 76 1988 16.6% 59 1989 31.7% 82 1990 -3.1% 64 1991 30.5% 45 1992 7.6% 46 1993 10.1% 40 1994 1.3% 78 1995 37.6% 85 1996 23.0% 75 1997 33.4% 95 Average 17.4% 60 Std. Dev.13.1% 22 So, based on the above, we can calculate the average number of funds outperformed by the index during various market conditions: S&P 500 Performance Down 0-5% <5% 5-10% 10-15% 15-20% >20% # Years since 1972 5 yrs 1 yr 6 yrs 4 yrs 1 yr 4 yrs 11 Yrs Ave. % Funds Index Beat 49 78 54 58 40 60 67 Standard Deviation 26 N/A 26 23 N/A 29 18 Best wishes, I2

To: Justa Werkenstiff who wrote (2212)	11/21/1998 10:52:00 AM
From: Investor2	Respond to of 15132

RE: Further Thoughts on S&P 500 Index Fund - Since 1972, the average percentage of general equity funds that were outperformed by the index fund was 60%. - One year (1977) the index fund only outperformed 15% of general equity funds. - Three years, the index fund outperformed more than 85% of general equity funds, with a high of 95%. - During the 10 years when the market went down or went up less than 10%, the index fund outperformed an average of 56% of general equity funds. - During the 16 years when the market went up more than 10%, the index fund outperformed an average of 63% of general equity funds. Best wishes, I2 P.S. Did the small cap stocks outperform the large cap stocks during those years where the S&P 500 index fund underperformed the majority of general equity funds?