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One other chart that reinforces that buying the dow at 892 in 1965 would not have been a good investment.

This shows that the Dow was as low as 777 in 1982. In 17 years your total return would have been -13% + dividends - inflation. From eyeballing that earlier chart, the dividend yield probably averaged about 4.5% over this period. Here is an inflation chart:

It looks like it averaged similar or slightly higher.

It would seem that an investor buying the Dow in 1965 would still have a negative total return 17 years later suggesting that Graham's words of caution were indeed merited.

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