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Table 1 below shows the annual percentage returns for the past 3, 5, 10, and 15 years.
In order to illustrate the outstanding returns from this system we have chosen to
compare our returns with some of the best investors of our time.
The
Warren Buffet Column is based on the returns of Berkshire Hathaway (BRKA).
Peter Lynch, the ledgendary fund manager for Fidelity's Magellan Fund from 1978
to 1990 achieved an average annual return of 29.2% and only once underperformed the
S&P500. Note that Peter Lynch no longer manages the Magellan Fund, therefore
we have attributed his 29.2% return to each of the periods represented in the tables
below.
By Means of further comparison, we suggest that you compare the stocks monthly returns
against the very best performing mutual funds over the past 3, 5, and 10 years.
You may get information on the top performing mutual funds at
MorningStar.com.
| Period | From | To | S&P500 | Warren
Buffet | Peter
Lynch | Stocks
Monthly |
| Past 3 Years | 31-Dec-2006 | 31-Dec-2009 |
-7.13%
|
-3.31%
|
29.20%
|
8.29%
|
| Past 5 Years | 31-Dec-2004 | 31-Dec-2009 |
-1.60%
|
2.43%
|
29.20%
|
14.72%
|
| Past 10 Years | 31-Dec-1999 | 31-Dec-2009 |
-2.41%
|
5.81%
|
29.20%
|
32.28%
|
| Past 15 Years | 31-Dec-1994 | 31-Dec-2009 |
6.07%
|
11.11%
|
29.20%
|
39.12%
|
Table 1
Consistancy over different time frames is another test that should be performed.
The next table shows performance data from three different five-year time segments.
| Period | From | To | S&P500 | Warren
Buffet | Peter
Lynch | Stocks
Monthly |
| Segment1 | 31-Dec-1994 | 31-Dec-1999 |
26.07%
|
22.50%
|
29.20%
|
53.88%
|
| Segment2 | 31-Dec-1999 | 31-Dec-2004 |
-3.48%
|
9.30%
|
29.20%
|
52.54%
|
| Segment3 | 31-Dec-2004 | 31-Dec-2009 |
-1.60%
|
2.43%
|
29.20%
|
14.72%
|
Table 2
Finally, check recent performance.
Over the past 5 years (From Dec-2004 To Dec-2009) an investment of $10,000 would now be worth $19,866. Not too bad considering what has been happening in the market.
The great feature about this system is that you are in control. You could have decided not to invest during the market turmoil. In fact if you had invested using our falling stocks strategy in 2008, you would have managed a 175% return for the year.
Investment Returns Month by Month
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