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Comment by cperciva

If one bought and held the Dow from 1921 to present, the total return would be 500,000% (5,000x)!

On the other hand, CPI has gone from 17.6 to 271.7 in the past century, so that 5000x total return is really 324x after adjusting for inflation -- also known as 6%.

Now, 6% after inflation is nothing to sneeze at; but it started at a cherry-picked low point in the market and it comes with a lot of market volatility... and it's still not dramatically better than the 4-5% which ultra-long term investors (e.g. university endowment funds) aim to receive after inflation.

parent cperciva 5 years ago

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