That percentage is based on a few assumptions.

Those investments are simply far too volatile. In that article, Buffett describes the analysis that led him to that kind of conclusion:.

Stocks will probably rise at about that rate and dividend payments will boost total returns to 6 percent to 7 percent, he said. The bull market tainted investor expectations, Buffett said. Polls in the late s showed some investors expected stocks to gain 14 percent to 15 percent a year, he said.

Check the data for yourself. Past performance is no indication of future results. That simple statement is true of any investment. Some people project the latter part of this decade holding an American economic renaissance thanks to our burgeoning energy independence and our long period of low interest loans funding rapid business growth.

Others see economic doom in our future.

Nothing is a sure bet. All we can do is put ourselves in the best position we can.

For me, that means diversification, with part of that diversification coming in the form of index funds held over the long term. Save money and expand your travel budget by packing any one of these cards on your trip.

Which has performed better historically, the stock market or real estate? | Investopedia

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How Much Does the Stock Market Return? » Money Boss

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In that article, Buffett describes the analysis that led him to that kind of conclusion: Get A Free Trip This Summer by using the Right Card Earn credit card points toward your favorite ways to travel. Avoid Foreign Transaction Fees with These Top Picks Save money and expand your travel budget by packing any one of these cards on your trip.

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