Compounders – Deere & Co.

Including dividends, the compound return for Deere & Co stock over the past 10 years has been 22% p.a.

Google (Alphabet stock) over the same time has returned 25% p.a.

and the S&P 500 10 year compounded annual rate (including dividends) has been 16%.

Over 25 years, the S&P 500’s annual compound return been 10.7%.

while Deere & Co has returned 14% per annum

and my Dad’s investment property in outer western suburbs of Melbourne, Australia has been 9.6% p.a…….but not including taxes on income, management fees, council rates and maintenance.

Albeit this is a cherry picked sample amidst two decades of declining interest rates, lower tax rates, increased liquidity and the largest asset bull market seen in the past 50 years…..it maybe prudent to recalibrate expected returns for the next 10 years.

Or at the very least, investing will become much more difficult.

February 20, 2023
by Rob Zdravevski
rob@karriasset.com.au