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Stock Market Truisms Or Stock Market Myths?

Sunday, July 25, 2010 - 6:41 AM
This WSJ article makes the case that many of the stock market truisms that we often hear are mostly myths. Some of these so-called truism examined in the article include "Stocks on average make you about 10% a year", "Investing in the stock market lets you participate in the growth of the economy" and "If you want to earn higher returns, you have to take more risk."
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,249
1. Sunday, July 25, 2010 - 10:08 AM
The only individual stock I own are Sam Adams. I bought the maximum of Class A Common Stock in 1995 when they went public. The stock price hovered around +50% or so for the longest time, for years! At some point it went up to more than +200% a few years back, only to come down to the customary +50%. In the past year or so however, the price exploded to about $5k (I paid $1.5k), so as of now it's more than +300% - spread across 15 years of holding them, this translates to more than 20% annually:-) Even factoring in inflation, this seems a rather nice increase.

I'll hold on to them for sentimental reasons and will only sell them if I need to.
darkdreamer4udarkdreamer4u174 posts since
Jun 11, 2010
Rep Points: 632