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Percentages vs. Dollars---A Battle For Investors Attention

FYI: Two familiar figures are duking it out in a battle for fund investors' attention and comprehension. On the one side: the percentage. On the other, the plain dollar amount
Regards,
Ted
http://online.wsj.com/articles/percentages-vs-dollarsa-battle-for-investors-attention-1404679629#printMode

Comments

  • I 100% agree with this article:)
  • Guido said:

    I 100% agree with this article:)

    So do I. I see annualized performance figures talked about constantly in articles. They make it sound like there's not much difference in investment scenario A versus investment scenario B over a 30 year investment horizon, based on the annualized performance figures. When you put real numbers to this and use an Investment Return Calculator on the internet to see the actual result of A versus B, the small annualized difference makes a massive difference in the amount of dollars you will have at the end of the study period in question. But the authors almost hide this fact in their article.
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