Warburton Capital Management

Solutions for your wealth management needs in Tulsa.

Capturing the Market Rate of Return

By Warburton Capital | July 12, 2018 | 0 Comment

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Warburton Capital Mangement

Capturing the Market Rate of Return

So…a buddy walks in!  This time our buddy has been reading a lot about ‘how the markets work’ and he has, terrifically, gained appreciation for Capturing The Market Rate Of Return!

My buddy is going on and on about how ‘Stock Pickers Have A One Out Of Six Chance Of Delivering The Market Rate Of Returns Over Fifteen Year Periods’.  Having discussed this fact our buddy declared “I will never again own individual stocks”!

Our buddy really is onto something.  If an investor purposefully manages their total portfolio with a precise amount allocated to bonds for currency needs and the balance of their portfolio in stocks to growth their wealth for either their elderly years or their beneficiaries – which may include charities as well as family members – then, historically, that investor has been well served by receiving the Market Rate Of Return.

Enclosed is a graph which reveals the long-term growth of an initial $1.00 invested in stocks, bonds bills and inflation as well as the volatility (inter-period price fluctuation) of those same four asset classes.  Of course, with inflation, the growth is a reduction in our purchasing power, so, it would seem imprudent to just stuff our cash under our beds or in our checking accounts.

In the words of Winston Churchill – my sister kind of got me on a Winston Churchill kick, “However beautiful the strategy, you should occasionally look at the results”. Please rest assured that we will always be here for dynamic review of results and financial plans.

On behalf of our firm and with my sincere wishes that you possess an appreciation for Capturing The Market Rate Of Return, I remain

Yours truly,

Warburton Capital Management

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