Thursday, March 08, 2007

101 Investing Tips

13) There’s more to the stock market than the DOW.
Investing in the DOW is not relevant to investing in an individual stock or the Wilshire 5000.
14) The rule of 72.
This is probably the very best tool for estimating returns and performance of investments. Divide 72 by the annualized percentage return. The answer gives how long ( in years) it takes for the investment to double. You can also work backwards to get an approximate yield.

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