Graham and Doddsville -- Value Investing In The New Era Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: porcupine --''''> who wrote (410)	6/19/1998 7:45:00 PM
From: Freedom Fighter	Read Replies (1) of 1722

>But, Graham, near the beginning of the Intelligent Investor, points >out that 20 years of dollar cost averaging on the DJIA, starting in >the worst possible year, January 1929, would nonetheless have yielded >a very respectful 8% annualized, well ahead of cash, bonds, gold, or >real estate. Based upon the past 200 years, for the long term >conservative investor, I can't conceive of what would have more >margin of safety than dollar cost averaging in a large cap indexing >product. What you say is true. However the whole point of the extra work we do as analyst/investors is to try to improve on those returns. This can only really be accomplished by concentrating your purchases in cheap stocks (which usually appear in cheap markets) and possibly selling overpriced ones (in markets like todays). In order to shoot elephants you need a gun! Meaning you must have cash available before the bargains become present.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next