ron505 wrote:Can anyone recommend a good website which provides/calculates total shareholder return over long periods? Ideally one where you can enter the stock and date purchased and have it calculate the total shareholder return over the period.
Thanks
Ron
I don' t know of any,but you have asked the perfect question and exactly what should be done.
The accumulation index would be as close as you can get probably.I never look at it for Australia as it only gives a false answer.
I.E $1000 invested on 1/1/1980 has grown to around $ 70K now,that is correct.The difficult bit is trying to work out what the costs of an index fund have been since 1980.At a very rough guess I just say they have taken one third of your money.Round it whichever way you like,from the 70 you have $45K and the fund managers have 25.Or you have 50 and the managers have 20.
Australian companies tend to pay high dividends,so I operate on 6% growth in shareholding and price over a long period .Thus CBA was $6 a share in 1990 ish,shareholding doubles every 12 years so coming up to 30 years later you have 6,000 shares at $75 each,$450K.Round it down to 5,000 shares if you like.The perfect way to teach why the tortoise beats the hare,do nothing at all for 30 years and let the directors get on with running the company.That is based on buying 1000 shares of course in 1990.The shareholder breakdown tells me that nobody is going to do that,around 0.4% of the population owns 1000 shares in that company now.They' d rather spend the 30 years saying " insert name of company here went bust". "All you have to do is find some body that owned shares in a company that went bust and ask them" Seems to be a really stupid idea to me, I' d rather find somebody that made millions from investing and ask them how they did that.
To get a rough idea just look at a chart,BP chart tells me that July 1988 they were £ 1.20 per share .Buy 1000 then, say you have 5000 shares now by reinvesting all dividends ,wonderful growth over the years.Do that with any company and you get a rough idea of long term TSR returns,just by doing nothing at all .
Some companies don' t have a DRP which annoys me.The best performing company I have is one of them,shares that cost me around $ 1.50 in the mid 1990s are over $40 now.No DRP so if I bought 1000 then I still have 1000 now.If I was sitting here with 5 or six thousand of them I would be very happy,$1500 becomes $250,000 roughly over that period.The dividend on $250K would be great,sadly no DRP ,so $ 1500 grows to around $41,000. A yield of around 5% on $40K is not much ,the ba#$&% D's.
Wonderful question,TSR is always the way to get rich.