Happy Valentine’s Day! At Presilium, we love our clients, and we also love investing in the leading companies in the world. 

And that’s for one simple reason: Investing in stocks has been the most reliable way to grow your wealth faster than inflation, consequently allowing you to reach much higher goals for you and your family. And while the market can feel unpredictable from day to day and even year to year, the ability to grow your wealth faster than inflation over time has been remarkably consistent. 

Let’s look at the data together! 

This is the financial battle we are waging every year- inflation. This is the value of one dollar from 1954-2024. One dollar will buy you today what 9 cents would have in 1954. In general, everything costs about 11 times as much as it used to. 

  

However, the amazing companies in the S&P 500, perhaps even more remarkably, have grown earnings much faster than inflation- in fact they are now 76 times higher than they were in 1954! 

 And consequently, those companies in the S&P 500 now pay out 48 times as much in dividends.

And of course, I saved the best for last. Those increasing earnings have moved share prices dramatically higher over the past 70 years. Today’s value of the S&P 500 is almost 200 times as high which means that even though everything costs 11 times more, your investments have grown by 200 times, giving you 18 times the purchasing power! 

At Presilium, we love helping our clients reach their goals. Maintaining a significant part of their portfolio in stocks has allowed us to do that. 

Be on the lookout for our next Financial Planning Fridays episode. Subscribe to our Youtube Channel so you never miss an episode. Or contact us directly; schedule your 15-minute call with us today.