The Importance of a Total Return Perspective

A total return perspective is so important. I always think about there's an old thing that I read years ago from Peter Lynch. That $1,000 is worth less in 10 years than it was today because of the effects of inflation. On the other hand, if I put that money into the market, into stocks, I like to think about my yield on cost instead of what my yield is relative to the current price. The rule of 72 which says that you divide the number of years into 72 and that tells you how long it takes for something to double.