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180 Don’t Make Me Say I Told You So
Constant $10 per share Scenario B - $8 a share Constant $10 per share Scenario B - $7 a share
1,500
1500 2000
1,714
1,200
1200 1,125
1500
1,286
900 1,200
Shares 900 750 Shares
1000 857 900
600
600
600
375 429
300 500
300 300
0 0
After 1st Quarter After 2nd Quarter After 3rd Quarter After 4th Quarter After 1st Quarter After 2nd Quarter After 3rd Quarter After 4th Quarter
Total Shares After Year 3 3,600 4,033 Total Shares After Year 4 4,800 5,748
Constant $10 per share Scenario B - $8 a share Constant $10 per share Scenario B - $9 a share
1,500
1500 1500
1,332
1,200 1,200
1200 1,125 1200
999
900 900
Shares 900 750 Shares 900
666
600 600
600 600
375 333
300 300
300 300
0 0
After 1st Quarter After 2nd Quarter After 3rd Quarter After 4th Quarter After 1st Quarter After 2nd Quarter After 3rd Quarter After 4th Quarter
Total Shares After Year 7 8,400 10,962 Total Shares After Year 8 9,600 12,295
Constant $10 per share Scenario B - $10 a share Making Money In A Down Market
1,200 Assumes a $1,000 a month investment into a stock, now at $10 a share.
1200
Constant $10 per share Scenario B 1,200
1000
900 1200
800 1000
Shares 600 900
600 800
Shares 600
400
300 600
200 400
300
0 200
After 1st Quarter After 2nd Quarter After 3rd Quarter After 4th Quarter
Total Shares After Year 9 10,800 13,495 0 After 1st Quarter After 2nd Quarter After 3rd Quarter After 4th Quarter
Total Shares After Year 10 12,000 14,695
Account value in year 10: $120,000 $146,950
Chapter 4: The Most Common Investor Mistakes