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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (3566)3/21/1998 2:49:00 PM
From: Chuzzlewit  Read Replies (2) of 78576
 
Well Paul you raise some interesting questions. But I think your cynicism is somewhat misdirected. So let me go down your list.

1. How could these nobodies have a better record than Warren Buffett?

This one is easy. If you invest in high quality growth stocks like Dell or Lucent or Microsoft you will outperform Buffet virtually all the time. But given the kind of investing these women did -- no way!!!

2. 2. How can people who have real lives like these folks - outshine professionals ...

Actually, this one is even easier. The pros churn and generated large expenses, so even a passive index fund routinely outperforms the pros. I routinely consistently outperform them by a very wide margin. All that is required is some patience.

But again, given the kind of investing these women did -- no way!!!

3. So how come these ladies aren't rich?

They probably are! selling bogus investment advice is a growth industry!

The real problem is that trying to time the market or outguess the market is generally a losing proposition. And most investment schemes fall into either one or the other of these categories.

Regards,

Paul
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