Presentation Transcript
Talisman Investment Planning :Talisman Investment Planning The Road to Recovery
History Repeats Itself :History Repeats Itself Another popular saying is, ‘There is nothing new under the sun.’
Mark Twain's guidance:
‘History does not repeat,
but it does rhyme.’
100 Years of DJIA Perspective :100 Years of DJIA Perspective With history as a guide, let’s look back at where we’ve been since 1900 http://bigpicture.typepad.com/comments/2005/12/100_year_bull_b.html
DJIA with P/E :DJIA with P/E http://www.minyanville.com/assets/catalog/products/00KAT-Dow100YrsMV.jpg
After Inflation DJIA :After Inflation DJIA Click here for link to http://homepage.mac.com/ttsmyf/
Ten Year Averages :Ten Year Averages The following page is a listing of the average annual rates of return over 10 year intervals.
10 Year Average Returns :10 Year Average Returns Here are the same average annual returns over 10 year intervals.
S&P 500 Back to 12 Years Ago :S&P 500 Back to 12 Years Ago
How Does Today Compare :How Does Today Compare
Recovery is Sweet :Recovery is Sweet
Major Indices Past 25 Years :Major Indices Past 25 Years
10 Years Ago, Rear View Mirror :10 Years Ago, Rear View Mirror
Rear View Mirror Today :Rear View Mirror Today
Range Bound Period :Range Bound Period
Fortune Magazine 1999 :Fortune Magazine 1999 Buffett wrote an article for Fortune Magazine, November 22, 1999, where he quoted the returns of the Dow over a 17 year time period.
Dow Jones Industrial Average
Dec. 31, 1964: 874.12
Dec. 31, 1981: 875.00
Fortune Magazine 1999 :Fortune Magazine 1999 During the same 17 year period of flat stock market performance, the GDP of the U.S. – that is the business being done by companies producing goods and services – had almost quintupled, rising by 370%.
Fortune Magazine 1999 :Fortune Magazine 1999 1965 – 1982, 17 years
GDP – 370%, almost a quadruple
DJIA – 0%
1982 – 1998, 17 years
GDP – less than a triple
DJIA – 875 to 9181, a more than 10 fold increase or, a 19% annual return
10 Years of Berkshire Hathaway :10 Years of Berkshire Hathaway http://www.bigcharts.com
Berkshire Hathaway Annual Report :Berkshire Hathaway Annual Report 2008 was the worst year in their 44 year history but,
“We have faced far worse travails in the past.”
“We always overcome the obstacles.”
The system of meritocracy that has facilitated our improving our standard of living nearly seven-fold during the 1900’s is still intact.
Conclusion – Buffett Comments :Conclusion – Buffett Comments “We don’t know when or by how much stock markets will rise or fall.”
“We don’t think anyone else can predict the winning and losing years in advance either.”
“The economy can be in a shambles but it doesn’t tell us whether the stock market will rise or fall.”
Compliance Disclosure :Compliance Disclosure Mutual Funds Provided Through FundEX Investments Inc.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated.
The opinions expressed are for general information purposes only and are the opinion of David Atwood. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. However, please feel free to call David Atwood to discuss your particular circumstances.
David Atwood
President, Talisman Investment Planning
FundEX Investments Inc.
1522 Sunningdale Road East,
London, Ontario
N5X 3Y6
519-434-8807
http://www.talismanip.com