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Replies to #914 on insane dividends
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bar1080

11/14/12 5:00 PM

#915 RE: fung_derf #914

Understand that S&500 performance is USUALLY depicted without dividends which, when compounded over 12 years, boosts performance enormously. Few people realize that until the mid-1950s most of the return from stocks came from dividends, not share appreciation. You can't overlook dividends (although almost everyone did in 2000)

I'm guessing you are looking at total return, divs included, for your funds. Right? Now check out tech-oriented funds from January 1, 2000, right before the bubble burst, and see how THOSE did.

You may have trouble finding some of those 1990s tech funds (like those from once-red-hot Janus). Many went out of business around 2002 or used that venerable trick of merging into successful funds.

Mutual fund companies bury their worst mistakes.