If a person invested $100,000 in the market in 1896

Sep 13, 2010

Stocks Simplified Writes
by: Shaun

If you were able to invest $100,000 into the DJIA in 1869 the year it opened you would have approximately $25,543,872.07 invested into it today (2010). From appreciation alone that would give you a return of a little over 5% a year.

If you count things like dividends which can range anywhere from an extra 1% to 7% a year (depending on the specific stocks that were in the Dow at any point of time) that number would be a lot higher. By that point I would not be surprised if you received $10,000,000+ in dividends in addition to the appreciation.

The S&P 500 is considered to be a better representation of the market because it tracks more companies (500 vs 30) and normally outperforms both the Dow and the NASDAQ giving off a return above 10% all things considered.

If a person invested $100,000 in the market in 1896

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If a person invested $100,000 in the market in 1896