The weekly digest — 21.08.24
A Winning Machine
What is more powerful than a 101-year-old winning machine? Since 1923, the S&P500 index has generated an annualised return of ~10.5%. For more than a century, it has:
Comprised of the bluest of the world’s blue-chip stocks, self, regulating and re-weighting these in line with their individual performances — eliminating user selection error.
Beaten 99.9% of professional investors, who typically underperform the index annually by ~2-3%, with the gap widening dismally over time.
Proven its stellar compounding potential; $1 invested in the index in 1923 would be worth more than $13,000 today.
Always regained its previous highs, surviving the Great Depression, one World War and the Covid pandemic.
Weekly Digest
This week, we received real-time, tangible evidence of the winning machine at work when Colgate paid its dividend. Originally a soap manufacturer established more than 200 years ago, Colgate is the global leader in toothpaste and manual toothbrushes, dominating more than 40 per cent of the global toothpaste market. It is also the most pervasive household brand, taking pride of place in more than 700 million households. These privileges are reflected in Colgate’s unbroken dividend payment track record which spans 121 years and, notably, includes 61 years of continuous annual dividend increases to date.
To Have and To Hold
The greatest threat to our investment success? Us. So, how do we get ourselves from outset to outcome? Over four years, we’ve collected more than four million data points that demonstrate how a particular methodological communication keeps investors on track. This email is part of a powerful anticipatory feedback loop that works as a bad-decision buffer. With our handholding, evidence shows investors are far more likely to hold onto their investments — long enough to enjoy their wins.
