Jurgis: regarding having a benchmark or goal. I think we've covered it for a while -g-. I have a financial goal. I'm not where I want to be this year. I'm not happy. I haven't a clue whether I'm beating the market as measured by the Russell or the S&P 500. I just don't care.
The benefit to me is that I don't change my investing style or think that it's wrong or needs serious adjustment.
For guys for whom S&P indexes are key, and for whom it's important to measure how good they are against a bogey, I assume they are happy.
If not, they are changing their investing style in an attempt to beat or equal the bogey. That certainly could be a benefit to them (maybe a benefit to me if I were more open to it.)
Wasn't it Mr. Buffett who said he would be thrilled (my words) if he could find an investment that gave him a guaranteed 15% return. Well, I'm in the same boat. IMO, it's something to do with portfolio size and place 'on the continuum of life' -g-. If I were were 20 or 30 yrs. old (again -g- sigh), then I'd want BIG returns, the BIGGEST because I'd want those women, those cars, those vacations, that home,those clothes, that early retire., etc. etc. I'd want my 25k or 250k to get those outsize returns. Dead money... that's for saps -g-. But, I'm not 20, or 30,or 40). I'm somewhere else (fortunately or unfortunately -g-). So I'm with Mr. Buffett in liking an absolute. I want $$$, absolute dollars -- not something up or down relative to the S&P. If the S&P goes up 20% each of the next five years, Great! If I can make 15% each of the next five years, I'd be thrilled. It's more than what I need or expect for my lifestyle. Good for me and good for all who want to beat the market.
What can I say but that I hope we all find what we are looking for? Best wishes. Paul Senior |
