Simple Truths When Looking at Investments

Beating the market is easy.  Just understate its performance.

Various investment promoters are touting their stock-picking prowess by comparing their returns, including dividends, to the Standard & Poor’s 500-stock index without dividends.” – Jason Zweig

http://online.wsj.com/article_email/SB10001424052702304563104576363892725584866-lMyQjAxMTAxMDAwNjEwNDYyWj.html

Everybody knows someone with special stock selection skills.  They are so special.  Sure, they are.

Dividends are part of stock returns.  Withholding dividends when comparing stock returns is a misrepresentation and lying.

That is all.

Thanks to Russ Thorton for the article.

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About Christopher Hessenflow

Christopher Hessenflow is a financial planner in the Chicago area. He works with all sorts of people who are much more interesting than he is. He enjoys his career which lends him time to think and, sometimes, be creative. Chip was born bald.
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