Share this Page URL

Chapter 13. Taking the Long View > Investing over the Long-Term: It Works! - Pg. 128

Taking the Long View 128 Many investment gurus such as Warren Buffett, Peter Lynch, and John Bogle have preached the same message for years. They have said, and the research has confirmed, that stocks, and in particular stock mutual funds for small investors, are the single best place to invest your money if you're prepared to buy and hold for at least five years. Here are some charts that explain what we're talking about. In Figure 13.1 (courtesy of Ibbotson Associates), we show you the stock market's annual total returns for the Standard & Poor's 500 stock index. Total return means reinvesting all dividends to buy more shares of the stock.