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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (42026)3/29/2011 9:01:40 AM
From: Madharry  Read Replies (2) of 78702
 
i agree about that distinction however i dont know how much value the investment manager adds to the process. its pretty difficult to evaluate risk, in any scientific way that makes sense. most seem to either use a yardstick of bonds/stocks/money market based upon age. some use some kind of beta analysis which is based upon past performance obviously. it seems like a few might have some models where they adjust the percentages based upon relationship between market pe or dividend and treasury bonds. not convinced that any of these approaches work that well or is very efficient. I have one wealthy friend, who more or less took the buffet approach and tweaked it a bit. has i think 5 years of expenses in tips and money markets, the rest a mix of stock and bond funds based upon his age. its nice to be really wealthy. he says he looks at his statements when they come in every month and thats it.
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