Cliffs Natural Resources Inc (CLF), Mesabi Trust (MSB): What Is Investment Success? This.

Over the past five years, for example, Corning Incorporated (NYSE:GLW) lost an average of about 9.3%, while the S&P 500 gained 5.7%. That’s a big difference. Over the past year, though, as of a few days ago, it was up 24%. That should seem terrific to most folks, and in a sense it is. But consider that over the same period, the S&P 500 gained almost 29%. One year is a rather short period to assess, though, so let’s back up. Over the past decade, Corning Incorporated (NYSE:GLW) stock averaged 8.8% growth annually. If that seems modest, compare it to a benchmark such as the S&P 500, which gained 7.7% over that period. If your investments don’t beat their benchmarks over significant periods, consider just investing in the benchmarks – or elsewhere.

Stay the course
To distinguish what is investment success from what is investment underperformance, take the above factors into account. Think, too, about inflation. If you’re not beating it, then you’re losing purchasing power over time. And think about your alternatives, too. If you’re all in bonds and they’re doing well, you might still want to add stocks to the mix, as they tend to beat bonds.

The article What Is Investment Success? This. originally appeared on Fool.com and is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Corning. The Motley Fool recommends and owns shares of Corning.

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