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Here’s a quick test:

Which of these factors doesn’t typically matter when it comes to long-term investment returns?

  • A. Cash flow
  • B. Dividends
  • C. Earnings reports

The answer is C! Earnings reports have a history of proving no long-term correlation with investment returns.1 

This may surprise both seasoned and new investors, but many factors believed to influence returns––actually don’t.

That’s the focus of this month’s newsletter.

Click here for a 5-min read on 3 common investment myths.

Armed with this information, you’ll be able to make more informed investment decisions.


Sources:

1. https://blogs.cfainstitute.org/investor/2021/03/22/myth-busting-earnings-dont-matter-much-for-stock-returns/ 


Post Author: Robert Jacobs