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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75809  
Subject: Re: Hi gang... wow!!! Date: 9/17/2013 10:25 PM
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CCinOC asks,

From the link: One thousand dollars invested in the S&P 500 at the end of January, 1998 would have been worth $5557 at the end of July, 2013. However, if the dividends were reinvested in the index, the investment would be worth $10,635 by the end of July. Reinvesting the dividends roughly doubled the value of the investment.

Thanks for the link, but the investment is doubled, not tripled, as Ray claims. But then Ray said he would have "$6-9 million" in his account from investing hundreds of thousands.

</snip>


Like I said in my previous post, there is a compounding effect.

1998 to 2013 is only 15 years, that why it only doubled.

Ray's example was for a 40-year time frame, greatly increasing the compounding effect. I'm surprised it only tripled.

intercst
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