Below is a 30 year chart of the S&P 500 starting in 1995. The annual rate of return was 10.5% for this period, much higher than any safe return offered by bonds or even real estate. Here was an opportunity to make 18 times your original investment—$100,000 turned into $1.8 million. Or $1,000,000 turned into…well you get the idea.
It required patience. The index peaked in 2001 and failed to get past that level until 2012. But dividends continued to flow. So again, why do so many people avoid stocks?
Here’s why: The next chart shows the S&P 500 since the beginning of 2025.
The drop in stock prices that started in mid-February turned into a collapse in early April. Those who stayed out of stocks feel vindicated by this nasty correction. And they will use it as an excuse to continue to watch from the sidelines while stock investors make a 10.5% annual return over the next 30 years.
Here at Dock Street we are quite certain that the next 30 years will resemble the last 30. And based on how our portfolios have performed over time, the potential gains could exceed 10.5%. So don’t be a spectator. Get in the game.
Best regards,
Dock Street Asset Management, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. You should not assume that any discussion or information contained in this letter serves as the receipt of, or as a substitute for, personalized investment advice from Dock Street Asset Management, Inc.
It is published solely for informational purposes and is not to be construed as a solicitation nor does it constitute advice, investment or otherwise.
To the extent that a reader has questions regarding the applicability of any specific issue discussed above to their individual situation, they are encouraged to consult with the professional advisor of their choosing.
A copy of our Form ADV Part II regarding our advisory services and fees is available upon request.
Our comments are an expression of opinion. While we believe our statements to be true, they always depend on the reliability of our own credible sources. Past performance is no guarantee of future returns.
