What has been your experience with Compound Stock Earnings?

Question

What has been your average monthly return? How long have you been working with the company? Tell me about the charges

Answer 1

if you can invest in a company that has steady growth,  the return from the compounding can be very great indeed.  I have stock in only one company and two mutual funds  that I have held for a long enough period of time for the compounding to really become evident.  I had another stock  but I recently sold it.  The one I still have is BLL.  I have owned the stock for 8 years.  In that period of time my return has been a total of 250%.  One mutual fund I have owned for 17 years.  The total return on it has been 170%, just 6% annually.  The other I have owned for 6 years.  The total return on it has been 80%, about 10% annually.  There are no charges to own stock other than to buy it initially.  The commission can run about $7.00 to 20.00 over the internet, much more from a full service broker.  You do have to pay taxes on the dividends.  That can be somewhat traumatic.  Mutual funds have annual expense ratios based on the assets, normally somewhere between 0.15%  all the way up to as much as 2.5% depending on the fund.  Some funds have a sales charge in addition which can be as much as 5.5%