Quote:
Originally Posted by JoelJohnson
Warren Buffet once said "Never bet against the US economy". Over time the market always goes up. Remember, the rich own most of the market, they will do whatever it takes to make money over the long term.
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My thoughts. I am proudly contrarian. We hear terms such as Buffet Like. Reality we do not trade in the same market as Buffet does. We can trade exactly as Buffet does by buying shares in Berkshire Hathaway. Rich? For perhaps too many their definition of rich is anyone who has more than they do. I compare my results to the S&P. I rarely beat the S&P. Buffet credited with being the greatest stock picker has suggested we simply buy an S&P index.
That option is available to everyone. Do whatever it takes to make money? Not sure what that means. I was an overnight success. It only took me 49 years of hard work and investing.
Buffet spoke about the magic of compounding. Average stock market return is quoted as 7-8%. Actually over the past 15 years it has been almost twice that. At 8% money doubles every 9 years over 49 years that is 5.4 times 10,000=20000 (1)20,000=40,000 (2) 40000=80,000 (3) 80,000=160,000 (4) 160000=360,000 (5) the half=540,000. Fuzzy math perhaps but how it works for all.