The ICA Guide
The ICA Guide
The ICA Guide
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Time, not timing, is what matters<br />
Date of<br />
market high<br />
Louie the Loser never times anything<br />
right. Every year, for the past 20 years,<br />
he’s invested $10,000 in <strong>ICA</strong> on the<br />
worst possible day to invest — the day<br />
the stock market peaked. 1<br />
Worst-day investments (market highs)<br />
Cumulative<br />
investment 2<br />
A program of regular investing neither ensures a profit nor<br />
protects against loss, and investors should consider their<br />
willingness to keep investing when share prices are declining.<br />
1 As measured by the unmanaged Dow Jones Industrial Average, a priceweighted<br />
average of 30 actively traded industrial and service-oriented<br />
blue chip stocks.<br />
2 Cumulative volume discount applied when appropriate.<br />
Value<br />
on 12/31<br />
6/1/92 $ 10,000 $ 9,958<br />
12/29/93 20,000 20,503<br />
1/31/94 30,000 29,748<br />
12/13/95 40,000 48,350<br />
12/27/96 50,000 67,105<br />
8/6/97 60,000 96,851<br />
11/23/98 70,000 129,013<br />
12/31/99 80,000 160,021<br />
1/14/00 90,000 176,155<br />
5/21/01 100,000 176,967<br />
3/19/02 110,000 159,332<br />
12/31/03 120,000 210,894<br />
12/28/04 130,000 241,164<br />
3/4/05 140,000 267,941<br />
12/27/06 150,000 320,362<br />
10/9/07 160,000 348,596<br />
5/2/08 170,000 234,121<br />
12/30/09 180,000 307,415<br />
12/29/10 190,000 350,532<br />
4/29/11 200,000 353,295<br />
Average annual total return (6/1/92–12/31/11): 5.5%<br />
So why is he smiling? Because Louie’s investment has done very<br />
well — nearly as well, in fact, as it would have if he had picked<br />
the best day to invest each year.<br />
Date of<br />
market low<br />
Best-day investments (market lows)<br />
Cumulative<br />
investment 2<br />
Value<br />
on 12/31<br />
10/9/92 $ 10,000 $ 9,989<br />
1/20/93 20,000 21,654<br />
4/4/94 30,000 31,719<br />
1/30/95 40,000 53,711<br />
1/10/96 50,000 75,753<br />
4/11/97 60,000 110,619<br />
8/31/98 70,000 148,129<br />
1/22/99 80,000 183,843<br />
3/7/00 90,000 201,361<br />
9/21/01 100,000 203,128<br />
10/9/02 110,000 184,680<br />
3/11/03 120,000 246,541<br />
10/25/04 130,000 281,304<br />
4/20/05 140,000 311,499<br />
1/20/06 150,000 372,272<br />
3/5/07 160,000 404,955<br />
11/20/08 170,000 275,768<br />
3/9/09 180,000 366,256<br />
7/2/10 190,000 417,891<br />
10/3/11 200,000 421,604<br />
Average annual total return (10/9/92–12/31/11): 6.9%<br />
Any time can be a good time to start<br />
a long-term investment program.<br />
<strong>The</strong> <strong>ICA</strong> <strong>Guide</strong> 15
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