Buying During a Crisis - Nick Maggiulli

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Rowan Oak
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Buying During a Crisis - Nick Maggiulli

Post by Rowan Oak » Wed Mar 25, 2020 8:47 am

How long do you think it will take for the market to recover from its current 33% loss?

So, if you think the market recovery will take:
1 year, then your expected annual return = 50%
2 years, then your expected annual return = 22%
3 years, then your expected annual return = 14%
4 years, then your expected annual return = 11%
5 years, then your expected annual return = 8%

Even at 5 years for a full recovery, the market would be providing a return roughly in line with its historical average.

Buying During a Crisis
Posted March 23, 2020 by Nick Maggiulli
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger

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