Updated: Jan 13
That's a catchy tune, even , for an old fart like me ,but what great lyrics. More importantly , why mention on this blog?
"So they say
Dance for me, dance for me, dance for me, oh, oh, oh
I've never seen anybody do the things you do before"
Well I was thinking of Tesla when I was grooving to the tune, ok, waving my arms. This is the point, time goes quick, if, I was 20 and invested 1k, how much would it be worth in 30 years? Sadly, time goes too quick.
Look at Gold, we all know its precious, but did you believe it would outperform all other investments so much? I didn't bet on it
The point of this , writing mainly to the younger generation is even a small investment at this
time and place may well pay massive dividends, even if you don't give a shit now, I get it, sex spliffs , ok, don't really know what else these days ,its an age thing but think if you invest today $1000 and it performed like the following.
First, what can you buy for $1k today? A nice TV, ok a few extra inches goes along way :) but what would it be worth in 30 years? Alternatively:-
A $1,000 investment in Microsoft on the day of its initial public offering, or IPO, on March 13, 1986, would be worth more than $1.6 million today, according to CNBC calculations. That includes price appreciation and dividends.
Ok keep your trousers on, it doesn't all work so good,
Just under 10 years ago, Tesla took its first steps on Wall Street, seven years after being created. Since then, despite a crazy stock market journey, Tesla’s stock value has grown by a remarkable 2970%., work it out ? I cant, its Saturday night.
Surprisingly , not all tech stocks have done that well recently.
I can talk about the success of specific stocks but lets put this in a nutshell.
The historical average stock market return is 10%
The S&P 500 index comprises about 500 of America's largest publicly traded companies and is considered the benchmark measure for annual returns. When investors say “the market,” they mean the S&P 500.
Keep in mind: The market’s long-term average of 10% is only the “headline” rate: That rate is reduced by inflation. Currently, investors can expect to lose purchasing power of 2% to 3% every year due to inflation .But, put your money in another safe investment and get such are return.
Did you know a study in 2019 by a finance professor made a startling discovery about the stock market: Over a 90-year span, 96% of all stocks collectively performed no better than risk-free 1-month Treasury bills.
Food for thought, some investments are super performing, we all wish we bought Bitcoin or Microsoft/Tesla after the event. Many people are now learning to trade the movement of the market and as such online platforms are becoming more and more popular, if you can control and understand leverage, you can potentially make better returns than investing in stocks long term, but alas there is risk.