The New Zealand Stock Exchange Index compounds itself by adding dividends in. AND can only achieve 6.5% pa over the last 17 years.
Yet often its' performace is compared to basic house price movements. Imagine if rent on a house, nett, was added to the price movement...then compounded! Say that nett rent was 4% The comperable figure after 17 years would be ....huge. It would have to be a compound 12%, ie doubling in less than 8 years.
Any comments from someone good at compounding?
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