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The Daily Dow LEXINGTON, KY. (December 18) -- What's thirty minutes worth to you? That's about how long it takes each year to use the Dow Approach these days. And fully half of that will be spent placing your orders with your broker. If you get your data on the Dow stocks here in the Motley Fool, and you use a web-based broker, it's conceivable you can even cut that time in half. But what's 15 minutes a year, plus or minus?
So, you're going to put in half an hour once every 365 days to guide your investment future. What might you earn in that 30 minutes? Let's look at a few scenarios.
You're a young investor, just getting started with your portfolio and you've invested $5,000. (Let's assume these are tax-deferred accounts so we can see the forest despite the trees.) In a typical year, the Unemotional Value approach would earn 23% (the compound annual return since 1971). Your gain would be $1,150. To put that into an hourly-wage context, that's $2,300 per hour worked. Not too shabby.
Fifteen years later, your portfolio has grown to $111,570. So your profit for this year's 30 minutes of work would be $25,661. An hourly wage of more than $50,000! I could suffer through it.
Okay, you're now approaching retirement, having racked up 23% average gains for 30 years now. Your portfolio is now worth nearly $2.5 million. Your new hourly salary is $1.145 million! Hey you just about qualify as the richest Fool ever to have lived!
I know, I know, you can only work at that pay scale for 30 minutes a year, but isn't it cool when you twist the numbers around? Hey ma? Look at me; I'm making a hundred thousand an hour! (And you wanted me to be a lawyer.)
All silliness aside, you're going to be pretty hard-pressed to find a better return on your investment (of both time and money). That leaves a heck of a lot of time to watch the Kentucky Wildcats basketball team or read the current best-seller or favorite classic. And isn't that pretty much the point of investing anyway? Fool on!
Today's Dow Numbers Stock Change Bid ------------------- DD +1 1/8 93.00 CHV + 7/8 64.13 MMM + 7/8 81.13 EK +1 79.63 IMN --- 29.25
Day Month Year History
FOOL-4 +1.22% 0.86% 27.60% 27.60%
DJIA +0.61% -2.68% 24.03% 24.03%
S&P 500 +0.76% -3.53% 18.77% 18.77%
NASDAQ +1.51% -0.56% 22.17% 22.17%
Rec'd # Security In At Now Change
1/2/96 142 DuPont 69.88 93.00 33.09%
1/2/96 149 3M 63.76 81.13 27.24%
1/2/96 380 Chevron 52.38 64.13 22.43%
1/2/96 148 E. Kodak 67.00 79.63 18.84%
7/16/96 14 Imation 26.16 29.25 11.82%
Rec'd # Security In At Value Change
1/2/96 380 Chevron 19902.50 24367.50 $4465.00
1/2/96 142 DuPont 9922.25 13206.00 $3283.75
1/2/96 149 3M 9500.09 12087.63 $2587.54
1/2/96 148 E. Kodak 9916.00 11784.50 $1868.50
7/16/96 14 Imation 366.21 409.50 $43.29
CASH $1942.85
TOTAL $63797.98
Transmitted: 12/18/96
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