The benefits of compound interest can be astronomical. But the opportunity costs of poor market-timing can be devastating.
If you consider this chart from Ticker Sense’s Laszlo Birinyi, you see that investing a dollar in the S&P500 in January 1962 would have got you $18.66 more if all you had done was buy and hold.
Miss the five worst days each year and you’d pocket a cool $15,468.
Photo: Ticker Sense
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