The ICA Guide
The ICA Guide
The ICA Guide
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<strong>The</strong> benefit of time<br />
Long-term investors who have stayed in the fund through occasional (and inevitable) periods of declining<br />
stock prices historically have been rewarded for their patience.<br />
Here is <strong>ICA</strong>’s record of positive results over calendar periods,<br />
from January 1, 1934, through December 31, 2011. As you can<br />
see, one-year investments are more likely to experience negative<br />
results than are investments held for longer periods. If those<br />
35%<br />
short-term investors had held on for just two more years, they<br />
would have seen fewer than half as many negative periods. Note<br />
that every 10-year period has shown positive results.<br />
35%<br />
One-year periods Three-year periods<br />
35% 35%<br />
14%<br />
65% 65% 86% 86%<br />
65% 65% 86% 86%<br />
Positive periods: 51<br />
Negative periods: 27<br />
Five-year periods 10-year periods<br />
7%<br />
7%<br />
7% 7%<br />
93% 93% 100% 100%<br />
93% 93% 100% 100%<br />
Positive periods: 69<br />
Negative periods: 5<br />
14%<br />
Positive periods: 65<br />
Negative periods: 11<br />
Positive periods: 69<br />
Negative periods: 0<br />
14%<br />
14%<br />
<strong>The</strong> <strong>ICA</strong> <strong>Guide</strong> 17