Simply put, the only way to ensure a fair and decent return from common stocks is to own them all........yes, not one or two.........but the whole market. Total market index funds with minimal costs are still the best way to ensure success in the stock market, just as they were 30 years ago! Liquidity issues, the housing market, consumer slowdowns, inflation, etc..........None of this matters to the smart investor. Every month, every year, for your entire life just keep investing! And guess what? Who cares what the markets are doing! I DO!
Although indexing is the best thing going long term, what about some short term success? Is it possible? I will update regularly with news and comments, including current holdings along with buy, sell, and hold recommendations.
After all, a 100% indexed portfolio is boring and dull! So lets take 10% of the total value and play. Who knows, maybe we will hit a home run....
1 comments:
I agree with that, but at our age, I would like to take more risks as far as investing in individual stocks. It takes a lot more time, to learn enough, and that is why Warren Buffett said that "Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing." Unfortunately for us, he is refering to people like himself where investing in business (buying them) is their profession, and they can spend the time and focus on what they are doing. Instead, we take greater gambles, not investments, because we do not analyze things like him.
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