I’m more convinced than ever that Mark Twain was correct when he decided that he was more interested in the return of his money than the return on his money.
A couple of weeks ago, we discussed how often people in their 60s and 70s say that their primary residence of over 30 years was their best investment. This belief exists despite the fact that home values barely kept pace with inflation. How can this be, given that during the same time period average annual returns in various stock market indexes ranged from 8 to 13 percent?
Because for most people, it was the only investment that didn’t lose money!