Today is the 10th Anniversary of the stock market bottom of March 9, 2009. From October 9, 2007 through March 9, 2009 (17 months), the Dow Jones Industrial Average declined by 55%, with the S&P 500 declining by a similar percentage. The Great Recession officially began in December, 2007 and ended in June, 2009. Over the past 10 years, both the S&P 500 and Dow Jones Industrial Average have quadrupled.
Although the S&P 500 (with dividends included) declined by 37.0% in 2008, it rose by 26.5% in 2009, 32.4% in 2013 and 21.8% in 2017. This index rose in each year from 2009 through 2017, but declined by 4.4% in 2018.
Over the 54 year period of 1965-2018, the S&P 500 (with dividends included) rose in 80% of the years, while declining in the other 20%. (The 54 years were comprised of 43 up years and only 11 down years for the S&P 500 with dividends included.) During this time period, the S&P 500 (with dividends included) achieved a compounded annual gain of 9.7%.
David I Kass
Clinical Associate Professor, Department of Finance
Ph.D., Harvard University
Robert H. Smith School of Business
4412 Van Munching Hall
University of Maryland
College Park, MD 20742-1815
Phone: 301-405-9683
Email: dkass@rhsmith.umd.edu (link sends e-mail)
Dr. David Kass has published articles in corporate finance, industrial organization, and health economics. He currently teaches Advanced Financial Management and Business Finance, and is the Faculty Champion for the Accelerated Finance Fellows. Prior to joining the faculty of the Smith School in 2004, he held senior positions with the Federal Government (Federal Trade Commission, General Accounting Office, Department of Defense, and the Bureau of Economic Analysis). Dr. Kass has recently appeared on Bloomberg TV, CNBC, PBS Nightly Business Report, Maryland Public Television, Business News Network TV (Canada), Fox TV, American Public Media's Marketplace Radio, and WYPR Radio (Baltimore), and has been quoted on numerous occasions by Bloomberg News and The Wall Street Journal, where he has primarily discussed Warren Buffett and Berkshire Hathaway. He has also launched a Smith School “Warren Buffett” blog. Dr. Kass has accompanied MBA students on trips to Omaha for private meetings with Warren Buffett, and Finance Fellows to Berkshire Hathaway’s annual meetings. He is an officer of the Harvard Business School Club of Washington, DC, and is a member of the investment and budget committees of a local nonprofit organization. Dr. Kass received a Smith School “Top 15% Teaching Award” for the 2009-2010 academic year.
The Hong Kong of today won’t be the Hong Kong of tomorrow.
Q2 hedge fund letters, conference, scoops etc
Now, I know what some of you are going to say. That... read more
Longleaf Partners Fund commentary for the third quarter ended September 30, 2015.
H/T Dataroma
Longleaf Partners Fund was down 19.78% in the third quarter, trailing the S&P 500 Index’s 6.44% decline.... read more
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In poker, the blue chips have the highest value.
I don’t like the idea of using poker analogies for investing. Investing should be far removed from gambling.
Get The Timeless Reading... read more
Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) said today that it has reached a definitive agreement with The Procter & Gamble Company (NYSE:PG) to acquire its Duracell battery business.
The transaction is... read more
After announcing her departure from Harvard University’s endowment, investment head Jane Mendillo will not be moving to a hedge fund but rather might enjoy semi retirement dabbling in music,... read more
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