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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."
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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.
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darkdreamer4udarkdreamer4u174 posts since
Jun 11, 2010
Rep Points: 632
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