Investment Wisdom

[The White Coat Investor]

I came across this recently over on The Student Doctor Network. Not sure where it came from, but I thought it was interesting to look at. Not really sure what the Y axis numbers really mean, but the relative relationships were illuminating I thought. What do you think?

[Docbeans]

Cant see the figure

[The White Coat Investor]

Jeez, give me 2 minutes! I had an upload issue and had to convert it from a PNG to a JPG.

[PhysicianOnFIRE]

I guess I can expect 6.5% to 7%, or that's where I would fall on the scale, anyway.  Backtesting would give better returns than that, though.

[Docbeans]

Sorry, I didnt realize you were just posting   ... Thanks- see it now. Is the Y-axis avg annual return??... I'm at a grand total of 0%

[G]

I don't know.  The genius of Warren Buffet/PhD quants is debatable...then again, I happen to think that "guns and ammo" are a perfectly reasonable place to store wealth.  Heck, the shells I use for shooting skeet cost 40% more than they did 3 years ago.

[jfoxcpacfp]

Looks more like a humorous meme some random investor posted rather than anything approaching scientific analysis or research.

[YYjames]

well most of the time financial media is showing me a humorous meme rather than anything approaching a rigorous analysis

[scbunker]

I think he intends Y-axis to be expected annual return, perhaps adjusted for inflation. The numbers fit reasonably, I think.

[Dr_JB]

Could insert 8% for index funds + Rebalancing + TLH + Small/Value+/-International Tilt

[Josh0731]

I don't think anyone should get hung up on the Y-axis - who knows what will happen in future?  But the overall point is well-taken: you should aim to be high on the ladder.  I think paying for high-fee loaded mutual funds should be a negative number because the kind of person who would still do that in 2016 (and they're out there) is almost certainly the kind of person making all kinds of awful financial mistakes elsewhere.

[dfw_pilot]

The White Coat Investor wrote:

Not sure where it came from...

Click to expand...

MMM posted it back in November 2014.

 

http://www.mrmoneymustache.com/2014/11/04/why-i-put-my-last-100000-into-betterment/

[squirrel]

I think all my guns and ammo are going to appreciate a lot more than that.  I should be able to at least get to 0%.  Ha Ha

[dfw_pilot]

Agreed. Guns and ammo are way down the list after 401k's, IRA's, taxable, 529's, and saving, but I'm still buying. Prices are lower than I've seen in years.

Low prices = more fun!

[janettebournes]

Our local gun broker actually advised us to start a trust because he believes fully automatic weapons appreciate by 15% annually and would provide significant value for our heirs

I'm pulling all my money out of Vanguard as we speak...