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From Daniel NICOLAS, Client Portfolio Manager, Harris Associates
Warren Buffett once referred to compound interest as the 8th Wonder of the World, and 25 years is enough time to see that “wonder” working. Anyone who invested in the SP 500 just over 25 years ago, when we started our first mutual fund, would now have more than nine times their original investment.
In case you are tempted to think the past 25 years was a positive “perfect storm” for equity prices (the real Perfect Storm with 100 foot waves off the U.S. East Coast did occur in 1991), let’s remember, chronologically, some of the key events that market-timers cited as reasons to not invest in stocks:
Operation Desert Storm, global recession, Hillarycare, Fed...
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