Friday, December 13, 1996
For the Price of a Soda
by MF DowMan

You know that soda you snag from the vending machine at work every day (sometimes twice a day)? Would you trade me $100,000 for it?

If you would stick the 60 cents in a jar each day and invest it once a year, it's amazing how fast it can grow. Let's look at the numbers for an investor who uses DRiPs, starts with $100 and then socks away his Coke money every day and invests it just once a year.

A 60-cent-a-day habit runs you $219 a year. Not huge money, but a habit's a habit. Don't touch my caffeine, but there are even more expensive habits out there waiting to become cash cows. If you start with $100, add $219 a year, and achieve 20% returns with a DRiP version of the Dow Approach, your Coke money becomes nearly $113,000 after 25 years.

Of course, $113,000 in 25 years won't still buy you a pair of his and hers Mercedes like it can today, but it should still be able to buy you one (about $42,000 adjusted for inflation). So, you still want that Coke?