http://allfinancialmatters.com/2008/01/05/the-mathematics-of-overcoming-negative-returns/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 http://allfinancialmatters.com/2008/01/05/the-mathematics-of-overcoming-negative-returns/comment-page-1/#comment-405066 S.J.Raman Sun, 01 Mar 2009 03:06:37 +0000 http://allfinancialmatters.com/?p=2237#comment-405066 Your post is very interesting. I just don't understand in spite of best brains why mutual funds and other institutions engaged in share investing miserably fail towards making profits.Is it a failure to understand the maths of stock investment or greed to make money? Your post is very interesting.
I just don’t understand in spite of best brains why mutual funds and other institutions engaged in share investing miserably fail towards making profits.Is it a failure to understand the maths of stock investment or greed to make money?

]]> http://allfinancialmatters.com/2008/01/05/the-mathematics-of-overcoming-negative-returns/comment-page-1/#comment-205756 Roundup for week of 30 December 2007: Philip Hayden Foundation edition at Mighty Bargain Hunter Tue, 08 Jan 2008 04:25:49 +0000 http://allfinancialmatters.com/?p=2237#comment-205756 [...] All Financial Matters explains the mathematics of overcoming negative returns. [...] [...] All Financial Matters explains the mathematics of overcoming negative returns. [...]

]]> http://allfinancialmatters.com/2008/01/05/the-mathematics-of-overcoming-negative-returns/comment-page-1/#comment-205141 » Weekly Roundup - $100 Oil Edition @ fivecentnickel.com Mon, 07 Jan 2008 04:59:06 +0000 http://allfinancialmatters.com/?p=2237#comment-205141 [...] JLP talked about overcoming negative returns when investing. [...] [...] JLP talked about overcoming negative returns when investing. [...]

]]> http://allfinancialmatters.com/2008/01/05/the-mathematics-of-overcoming-negative-returns/comment-page-1/#comment-204916 Dropping Net Worth, Decreasing Debt and Investment Math @ The Roundup Sun, 06 Jan 2008 16:51:09 +0000 http://allfinancialmatters.com/?p=2237#comment-204916 [...] All Financial Matters: Here’s one of those great mathematical demonstrations that show us what it takes to recover from an investment downturn. Just like compounding, it’s one of those things that doesn’t seem very obvious. [...] [...] All Financial Matters: Here’s one of those great mathematical demonstrations that show us what it takes to recover from an investment downturn. Just like compounding, it’s one of those things that doesn’t seem very obvious. [...]

]]> http://allfinancialmatters.com/2008/01/05/the-mathematics-of-overcoming-negative-returns/comment-page-1/#comment-204691 Dave Sun, 06 Jan 2008 06:25:43 +0000 http://allfinancialmatters.com/?p=2237#comment-204691 There's a subtle difference between JLP's and Aaron's language. In JLP's case, after a $10 stock falls 90% to $1, a 50% rise would take it to $1.50. In Aaron's case, it probably means that the stock fell, say, from $10 to $1, and now has risen halfway back to $10, i.e., to $5.50. That's certainly a huge loss, but it definitely is not as terrible as the original loss to $1. There’s a subtle difference between JLP’s and Aaron’s language. In JLP’s case, after a $10 stock falls 90% to $1, a 50% rise would take it to $1.50. In Aaron’s case, it probably means that the stock fell, say, from $10 to $1, and now has risen halfway back to $10, i.e., to $5.50. That’s certainly a huge loss, but it definitely is not as terrible as the original loss to $1.

]]> http://allfinancialmatters.com/2008/01/05/the-mathematics-of-overcoming-negative-returns/comment-page-1/#comment-204641 Aaron Sun, 06 Jan 2008 03:33:50 +0000 http://allfinancialmatters.com/?p=2237#comment-204641 Ever noticed that sometimes on CNBC when Kernen is talking about stocks on the move he will say, this stock has fallen 90%, but its risen 50% back from its low so things aren't so terrible? I hate when these kind of comments are made because when you see a drop like that, its going to take a lot more than that to make much of a difference to that investor that lost 90%. Ever noticed that sometimes on CNBC when Kernen is talking about stocks on the move he will say, this stock has fallen 90%, but its risen 50% back from its low so things aren’t so terrible? I hate when these kind of comments are made because when you see a drop like that, its going to take a lot more than that to make much of a difference to that investor that lost 90%.

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