As an off and on investor in FSII, and the sector, I'd like to point out that Don's efforts do extend to the broader markets.
The babble that stocks out perform all other investments over long time horizons holds true only when made during the upswings. Downswings can take years to recover from for those unfortunate enough to buy at the peak.
Your 10 year return in the DJIA in Jan 1973 would likely be low single digits, if memory serves correct. Anytime you see a chart, try converting it to inflation adjusted logrythmic gives you a much clearer picture of what has occurred to real wealth than the stuff we are bombarded with day in day out.
Buy and hold works great, when you buy in 1930, 1969, 1973- then sell at some point years later.
I think we need to watch for trends, both in financial asset valuations, and industries (ie technology changes), looking out 1-5years. With the increasing rate of change, cycle compression throws off previously valid timing models.
Thanks Don, for sharing your efforts in this sector! |
