/biz/ - Business & Finance

>>15593545
Maybe I should have said buy Berkshire then...
but I do believe in dividend payouts as well, especially to get great returns during bear markets and following recoveries.

I really just don't see 1970's like levels of inflation in the cards.

>>1697585
Inflation exists in good years and bad years. An inflation adjusted market would simply have lower peaks and less shallow valleys. But it doesn't change the shape of the curve.

And fiiinaly... the SP500
>the only reason you guys are so in love with index funds is you started investing somewhere in the biggest 5 year bullrun for indexes ever

Someone who started buying indexes in the 60s retired with ZERO gains in the 90s

>>860304

I agree with your points being right, because if it is as easy as I'm thinking than everyone would be rich.

However I think there are some holes in my knowledge of investing in the stock market that's making it hard for me to see the big picture.

Pic Related.

Can someone explain how the $1 invested will grow more than the relative price?

I thought when you bought a stock you were compensated based on the price of the stock? so if the stock value went down bellow a previous value you'd lose money.

Does pic related have to do with dividends or is this another compound interest trick?

>>525664

And finally the actual performance including reinvested dividends.

Oh hey, it looks like we're actually lagging historical growth and not overvalued at all! How shocking.