The Intelligent Investor - The Definitive Book On Value Investing

Period

1871–18801881–18901891–19001901–19101911–19201921–19301931–19401941–19501951–19601961–19701954–19561961–19631968–1970

Average

Price3.585.004.658.328.6213.8911.5513.9039.2082.5038.1966.1093.25

AverageEarnings

0.320.320.300.630.861.050.681.463.004.832.563.665.60

AverageP/E Ratio

11.315.615.513.110.013.317.09.513.117.115.118.116.7

DividendAverage

0.210.240.190.350.500.710.780.871.632.681.642.143.13

Average

Yield6.0%4.74.04.25.85.15.16.34.23.24.33.23.3

AveragePayout

67% 756458586885605455655856

Earnings

—

• 0.64%– 1.04+ 6.91+ 3.85+ 2.84– 2.15+10.60+ 6.74+ 5.80

c

+ 2.40

d

+ 5.15

d

+ 6.30

d

Dividends

—

–0.66%–2.23+5.33+3.94+2.29–0.23+3.25+5.90+5.40

c

+7.80

d

+4.42

d

+5.60

d

TABLE 3-2 A Picture of Stock-Market Performance, 1871–1970

a

Annual Growth Rate

b

aThe following data based largely on figures appearing in N. Molodovsky’s article, “Stock V

alues and Stock Prices,”

Financial Analysts Journal,

May 1960. These, in turn, are taken from the Cowles Commission book

Common Stock Indexes

for years before 1926 and from the spliced-on

Standard & Poor’s 500-stock composite index for 1926 to date.bThe annual growth-rate figures are Molodovsky compilations covering successive 21-year periods ending in 1890, 1900, etc.cGrowth rate for 1968–1970 vs. 1958–1960.dThese growth-rate figures are for 1954–1956 vs. 1947–1949, 1961–1963 vs. 1954–1956, and for 1968–1970 vs. 1958–1960.