It just depends on whether you are investing to beat the S&P500 by a few points (as Graham's partnership did) or whether you are trying to make real money. Most of us have far better things to do with our time than beat the S&P500 by 2 points a year. Anyway, it does not take a rocket scientist to beat the S&P500 - all you have to do is dollar cost average into it when the SPE is <20 and build up cash when it is above that. Why bother picking stocks for a couple extra percentage points?

For those of you who read Forbes, there was a great article in the February edition about Herbert Wertheim, an optometrist who started investing the cash from his small business in the 1970s in industrial and technology companies. His net worth is now about 2B - incuding 100-200M positions in Microsoft and Apple purchased at their IPOs. One of his core rules - (almost) never sell. Ironically, Wertheim didn't know a thing about value investing. He is very much of the Fisher mould.

It sounds so simple, and yet most of the people on this board would say you should have sold Microsoft at 50-60 times earnings in 2000, or whatever.

One of the lessons I've learned in my financial life - when learning from others, weight their views by their net worth.