The Intelligent Investor - The Definitive Book On Value Investing

TABLE 2-1 The General Price Level, Stock Earnings, and Stock Prices at Five-Y

ear Intervals, 1915–1970

Year 1915192019251930193519401946

c

19501955196019651970

Wholesale

38.084.556.647.343.843.066.186.897.2100.7102.5117.5

Consumer

35.469.861.158.247.848.868.083.893.3103.1109.9134.0

Earnings

1.24.97.761.051.062.843.623.275.195.36

Price8.317.9811.1521.6315.4711.0217.0818.4040.4955.8588.1792.15

Wholesale

Prices +96.0%–33.4–16.5– 7.4– 0.2+53.7+31.5+ 6.2+ 9.2+ 1.8+14.6

Consumer

Prices +96.8%–12.4– 4.7–18.0+ 2.1+40.0+23.1+11.4+10.5+ 6.6+21.9

Stock

Earnings – 21.9%– 21.6+ 33.1+ 1.0+168.0+ 27.4– 9.7+ 58.8+ 3.3

StockPrices – 4.0%

+ 41.5+ 88.0– 26.0– 28.8+ 55.0+ 21.4+121.0+ 38.0+ 57.0+ 4.4

Price Level

a

S & P 500-Stock Index

b

Percent Change from Previous Level

aAnnual averages. For price level 1957 = 100 in table; but using new base, 1967 = 100, the average for 1970 is 1

16.3 for consumers’ prices and

110.4 for wholesale prices for the stock index.b1941–1943 average = 10.c1946 used, to avoid price controls.