Greetings –
I found these statistics on a website called warrenbuffettsecrets: In 47 years, Buffett’s investment company, Berkshire Hathaway has achieved returns of 259,485% versus the S&P 500 returns of 4,783%. The difference in results is an astonishing 254,747%!
In my opinion, there is a more meaningful way to compare the two percentages you describe.
(Without making any judgment about the accuracy of either overall investment gain, but just examining the numbers.)
An 18.2% annual gain, compounded for 47 years, produces the 259485% overall gain of Buffett’s company. An 8.5% annual gain, compounded for 47 years, produces the 4783% overall gain of the S&P. The comparison is between 18.2% and 8.5%.
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The 47 th root of 259485 is 1.3037 that means an annual compounded gain of 30.37% and similiar calc with the s&p gives 19.75%.I think quite possible in the realms of amibroker its just the 47 years that bothers me .Thanks for the interest.I think this % come under money management and do play a role in the final fortune in the long run.
---N!!
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Thanks,
Howard
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-----Original Message-----
From: Natasha!! [mailto:dynomitedoll_ddd@xxxxxxxxx]
Sent: Saturday, February 12, 2005 11:10 PM
To: amibroker@xxxxxxxxxxxxxxx
Subject: Re: [amibroker] OT:Technical VS Technofundamental
trading
My previous article was a general view and for a literary audience nor was it a research paper though i have done quite a lot of lateral thinking on the subject.The word exponential should be taken in a literary sense and in tune with the general flow of the article and can be replaced by "Phenomenal"if you wish.