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To: Another John who wrote (30642)	5/23/1999 1:29:00 PM
From: Ramsey Su	Respond to of 152472

John, "not wishing to nitpick" but now we may be debating what is considered significant, to which there may not be any correct answers. To each their own. I obviously consider $4000 extra for a $10K investment over 5 years a little more significant than you do. Ramsey

To: Another John who wrote (30642)	5/23/1999 2:48:00 PM
From: Mike Buckley	Respond to of 152472

A difference of 2.75% pa or 14.53% over 5 years. John and Ramsey, In the same spirit of not nitpicking but trying to clarify important issues, I'll add to the conversation. The real issue is not what happens over five years. Instead, it's what happens over 50 years that's really important. Use the same $10,000 and the same rates of return, (31.95% and 29.2%) over 50 years. The two returns result in a value of $10.5 billion and $3.7 billion, respectively. That lousy difference of 2.75 points in the returns has an exponential effect that increases the value just a smidgeon under three-fold. Or over "only" 30 years, the results are $41 million and $22 million, respectively. The larger value is still almost twice as large as the value resulting from the lower returns. I agree with John that none of us can consistently time the market or a stock well enough to ensure the higher returns over the years. On the other hand, it's imperative that we use a combination of skills that helps us on our way to achieving returns that are just a few percentage points higher than we might otherwise achieve, because the resulting difference is STAGGERING. So when I tell my wife that I'm beating the S&P 500 by three percentage points over the last 10 years, that's our perspective. --Mike Buckley