Post #86 by mechinv on the Index Investing board

Investment Strategies / Index Investing

Unthreaded | Threaded | Whole Thread (7)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 0

The Nikkei 225 is back at levels not reached since 1989.

This is yet another example of taking a cherry-picked start date to scare people out of buying stocks. How many people do you know who made a one-time lump-sum investment in the Nikkei at the peak, and never invested again? I know zero people who did that.

Far more realistic is the Japanese worker who saved $10K every year from his paycheck, and dollar-cost averaged every month into the Nikkei (buying $833 of the index every month.) Here's how that investor did.

Nikkei Total Returns: Portfolio Value at Year End
                    1989    1999       2009        2019       2021
Buy $833 every              (10 yrs)   (20 yrs)   (30 yrs)    
month               $833    $99,827    $158,429   $617,545    $802,280

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (7)

Prev | Next

Announcements

Index Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.