The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: innerscorecard on March 19, 2015, 01:15:24 AM

Title: Total Return EPS and Long-Term S&P 500 Performance
Post by: innerscorecard on March 19, 2015, 01:15:24 AM

http://www.philosophicaleconomics.com/2015/03/decomp/

Fantastic article, relating to many of the items about return assumption that are relevant to individual investors making future planning decisions.

There are many points in here worthy of discussion. Please do not comment in this thread without reading the article.

Title: Re: Total Return EPS and Long-Term S&P 500 Performance
Post by: Mississippi Mudstache on March 19, 2015, 02:00:18 PM

That was a hell of a read. Took me an hour to digest it. Brilliant work - I think one of the most interesting points he made was how valuable stock volatility is for the long-term buy-and-hold investor. And it's fascinating to see how consistent the total returns have been for the last 100+ years. Nice confidence booster, bring on the next dip! :)

Title: Re: Total Return EPS and Long-Term S&P 500 Performance
Post by: hodedofome on March 19, 2015, 02:34:45 PM

Wish I knew who this guy was, he does good work. Perhaps an investment banker or hedge fund guy. I don't read everything out there but I don't see anything else like what he does.

Title: Re: Total Return EPS and Long-Term S&P 500 Performance
Post by: forummm on March 20, 2015, 08:00:12 PM

I read that and the intro post (http://www.philosophicaleconomics.com/2015/03/treps/). I've enjoyed his prior work too. Really great stuff. I actually liked the intro post better. He showed a convincing argument why a Nobel laureate was wrong in his stock market projection.