Saturday, March 09, 2013

Share Loss


If a share price decreases by 10% in one year then increases by 10% in the next year then the net effect is a decrease – the investor has lost out.

If a share price increases by 10% in one year then decreases by 10% in the next year then the net effect is a decrease – the investor has lost out.

This happens year after year after year.

If the price changes are more than 10% each year then the investor loses even more.





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