By October 30, 2014 Read More →

Power of Patience

Trailing Returns of the S&P/TSX Total Return Index
Canadian version

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As the expression says, “patience is a virtue.” Nowhere is this more true than in the world of investing, and here’s why. The nine charts in this calculator show the trailing returns of the S&P/TSX Total Return Index for terms ranging from one month to 30 years, over a 75 year period from 1939 to 2013.

Notice that as the investment holding period gets longer, the returns become consistently more positive. For example, there were 825 positive 5-year holding periods and only 15 periods with negative returns. The number of periods with negative returns drops off significantly after three years, and there are no negative periods after five years.

The Power of Patience Calculator

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