Thornburg Investment Management's vision

The Fourth Law of Investing

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Pixabay CC0 Public DomainLa cuarta ley de la inversión. La cuarta ley de la inversión
  1. Studies have shown that the individuals who earn the best investment returns—despite economic changes and market fluctuations– are investors who buy stock and remain invested for the long term.
  2. In the study they discovered that between 1983 and 2013, the S&P 500 returned an average 11.1% per year while, over the same time period, the typical stock mutual fund investor earned an average of 3.69% per year.  Of the difference, Dalbar attributed 1.4% to mutual fund expenses and the rest to investors’ poor timing decisions.
  3. Equity investment holding periods since the 1940s have generally declined. Specifically, an study compares the 8-year average holding periods of the 1960s to the 2010s when investor holding periods averaged just 5 months.