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Don’t Make Me Say I Told You So 135

S&P 500 vs. Average Stock Fund Investor Return
12/31/1999 - 12/31/2019
10%

8% 6.06%
Average Annual Return 6% 4.25%

4%

2%

0%
S&P 500 Average Equity Fund Investor Return
Sources: Dalbar, Quantitative Analysis of Investor Behavior, 2020.

Now let’s look at the difference in dollars between $100,000

invested in the S&P 500 over that 20-year period vs. the returns
for the average investor.

Standard & Poor’s 500 index over a 20-year period Average equity fund investor over a 20-year period
ending December 31, 2018
ending December 31, 2018
5.62% Average Annual Total Return
3.88% Average Annual Total Return
PLEASE REPLACE THIS WITH CHART #111. S&P 500
Assumption: $100,000 investment over 20 years, compounded annually. Assumption: $100,000 investment over 20 years, compounded annually.
VS. AVERAGE INVESTOR - UP TO END OF 2019. IT'S IN
$105,620.00
1 :
1 :
$103,880.00
11 : $152,002.72
11 : $182,476.83
$111,555.84
2 :
12 : $192,732.03
2 :
OUR SHARED DROPBOX FOLDER. $107,910.54 12 : $157,900.42
3 : $117,825.28 13 : $203,563.57 3 : $112,097.47 13 : $164,026.96
4 : $124,447.06 14 : $215,003.84 4 : $116,446.86 14 : $170,391.20
5 : $131,440.98 15 : $227,087.06 5 : $120,964.99 15 : $177,002.38
6 : $138,827.96 16 : $239,849.35 6 : $125,658.43 16 : $183,870.08
7 : $146,630.09 17 : $253,328.88 7 : $130,533.98 17 : $191,004.23
8 : $154,870.70 18 : $267,565.96 8 : $135,598.70 18 : $198,415.20
9 : $163,574.43 19 : $282,603.17 9 : $140,859.93 19 : $206,113.71
10 : $172,767.31 20 : $298,485.47 10 : $146,325.30 20 : $214,110.92

Final Invesment Balance: $298,485.87 Final Investment Balance: $214,110.92
If we assume that this portfolio never increased in value
again, the average stock mutual fund investor would have
Chapter 4: The Most Common Investor Mistakes