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The Keynote Index Fund: Buying and Holding AAPL Beats Market Timing

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What if you invested in Apple (AAPL) the day before each of Steve Jobs’ keynote addresses at Macworld and sold the day after? Matt Haughey researched historic stock prices and designed the Keynote Index Fund. A fund of this style would return an average of 2.2% immediate (not annual) growth over two days. According to my calculations, which I figured by starting with an initial amount, adding the returns of each of the two-day periods, I came up with a total increase of about 20% over the 9 year period. That’s not impressive — but if you assume that while not invested in AAPL, you’re in a high-yield savings account, the returns increase dramatically.

If you had purchased AAPL in 1997 and held until now, your investment would have increased over 50 times. As Matt admits, buy and hold wins when compared to this timing strategy.

Keynote Index Fund [A Whole Lotta Nothing]

Updated February 10, 2011 and originally published January 10, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

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