Don't understand what you are saying there either.
1. "Fees are derived from trading". I thought fees were derived from assets under management. You are saying fund managers who have MBA's know very well that MPT is the greatest, but that they (the fund managers) have sold out for the prospect of high salaries garnered through trading?
2. And I step back now and ask: Why is it even important to discuss beating the market? We're talking about the philosophy of investing, so okay for a Sunday -- but in real world, it's not necessary in order to make good money. (ref. Jeremy Siegel, his book).
3. Nothing wrong with buy and hold IMO. I just don't agree that this is the only or the best method. And you seem to be advising buying stocks that have appreciated a ton. You don't talk much about risk. Which is okay for you: your cost basis may be low and you avoid a capital gain, so you're in good shape. And I will give you that that the pe was high too when they were lower in price and expensive then too. But at this market juncture and at current valuations, I will need to see something concrete, to believe this is the correct interpretation of MPT (which you are saying is: buy growth stocks apparently regardless of current prices).
Do you really believe this is the best advice to offer anyone at this point -- that is, to buy the four stocks you listed earlier or such stock of similar characteristics? Given the possibility that "anyone" includes people with less than five years investment experience, and maybe a good bunch of people who have never owned, or been able to own, the same stock more that 18 months?
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