Is the DAX yield triangle misleading?

Anyone who has a little patience is always good at stocks. It just takes a little optimism.

A reason to celebrate: 30 years of Dax with stock exchange manager Theodor Weimer (left) and the inventors of the Dax.

Hpublicly not. It should hang in every bank branch and be printed in every school book. This could help reduce many misunderstandings and prejudices about stocks. The triangle created by the Deutsches Aktieninstitut shows the performance of the 30 largest German stock corporations. No more, but no less either. The numbers speak for themselves.

Anyone who has always invested in these stocks since the survey began in 1949 would have achieved an annual return of 11 percent including dividends. In 70 years, 1,000 DM would have become 760,000 euros. But more realistic investment periods also speak for themselves. Those who stayed invested for 30 years could achieve an average annual return of 5 to 14 percent, depending on the investment period. With 15 years of patience, there was only 1 percent return in the worst case, and in the best case 27 percent as an annual average.

All in all, that’s a typical long-term stock return of 8 percent a year. Many readers doubt this, consider it unrealistic, downright absurd. But so are the numbers. 21 of the past 70 years ended with losses on the German stock market, 49 with gains. A loss phase lasted longer than a year only three times: 1961/1962, 1965/1966 and 2000 to 2002.

These are of course all reflections on the past and offer no guarantee of a repetition in the future. But why should it get worse? Why should the innovative strength of companies suddenly dry up? So far, a certain confidence in the future has been worth hard cash.