Now ask yourself why Intel is going after low margin markets ? That is the question of the day.
I notice that there is generally a reluctance to face the above fact or answer the question that you have raised. And that, in a nutshell, is the "intelligent" investor's undoing.
Please note that I am not saying for sure that Intel is going to go to be a poor investment (in comparison to the S&P 500) in the future. However, if it begins to falter, its weighting in the index will be ruthlessly trimmed down and the index fund will scale back its investment in the company accordingly.
In contrast, the "intelligent" investor, looking at the rear view mirror (of course, he may make seemingly brilliant arguments that he is looking into the future, is knowledgeable about the technology, knowledgeable about the company, yadda yadda yadda... but what he is really doing is plain ol' looking into the rear-view mirror!), thinks that he knows more than the market and sticks on with the investment. And therein lies the clue as to why the vast majority of "intelligent" investors generally underperform the indexes... |
