If you generated 5 % annual returns with individual stocks from 1990 through 2015, and the S&P 500 returned 9 %
annually over that time frame, a re-evaluation is probably warranted.
Think of it like this: If you have $ 30,000 in a tax - free account with dividends reinvested, you can put yourself in the position to have 8.5 % annual growth plus 1.5 % returns coming from dividend reinvestment, so you could realistically compound your money at 10 %
annually over that time frame, due to the nature of high - quality cash generating businesses mixed with long periods of time and tax - favored holding structures.
Shares of Hershey, despite even higher valuation compared to Colgate, would have compounded at 11.50 %
annually over that time frame, turning a $ 10,000 investment into $ 46,500.
Not exact matches
While administering the test later in the year has potential benefits in measured performance, grading the tests
over a shorter
time frame costs more, estimated at some $ 3.9 million
annually in Colorado.
If you read commentary during that period in stock market history, you will often come across comments such as this: «The price of the S&P 500 components only rise 1.8 %
annually over that sixteen year
time frame.»
During this
time frame, the premiums will be assessed
annually and are likely to increase
over time.