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Chapter 13. Taking the Long View > Investing over the Long-Term: It Works! - Pg. 129

Taking the Long View 129 (Source: Ibbotson Associates, 2001) Figure 13.2. Average 5-year total return since 1926 for S&P 500. Ibbotson Associates' analysis of the annual returns for the S&P 500 Index averaged over a five-year period show that we ... · Made money 63 periods · Lost money 6 periods Not bad. By holding onto our investments (not panicking every time the market dropped) for at least five years, we went from 20 losing periods to 6 losing periods. The question is, can we make our case for buying and holding any better? In other words, what would it take to get rid of stock market losses? How about holding on for 10 years? · Made money 64 periods · Lost money 2 periods (and that was back in the mid-1930s)