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Politics : Formerly About Applied Materials
AMAT 249.89+3.1%Nov 26 3:59 PM EST

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To: Sun Tzu who wrote (28792)3/3/1999 3:56:00 PM
From: Robert O  Read Replies (1) of 70976
 
ot> mixing apples and oranges gets you fruit salad.

Nothing does worse than equities???? May I offer you some gold coins so that you may tuck them away and simply wait out the "inevitable" major correction that all predict but never truly comes? Or perhaps the answer is a savvy real estate investment that will pale in comparison to equities in the long haul. By eliminating the concept of reinvestment of dividends over time you are eliminating a HUGE portion of long-term return since compounding plays a major role. When literature refers to buy and hold they typically mean it, which means reinvest dividends into more shares. Why would you hold the stock but reinvest dividends in, say, silver... as a hedge <g>??

This argument reminds me of the three statisticians who go duck hunting for the first time. The first statistician shots and misses the duck by 6 inches too high, the second statistician shots and misses 6 inches too low, the third statistician exclaims: "we got it!"
Look out below!

RO

P.S. Almost without exception Buffett ends his annual report's personalized message with this caveat: "we did well this year, but do not expect next year to be nearly as good" ... you can imagine the investors' surprise when he tops each year.
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