Silicon Investor (SI) -- The First Internet Community

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.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (173253)	3/4/2003 11:35:14 PM
From: tcmay	Read Replies (2) \| Respond to of 186894

"Irrationalities like..."buy and hold" and watching 80% of your retirement evaporate? Even someone looking at chicken innards had a chance to get out. A "buy and holder" had NO chance. "Buy and hold" is the biggest lie yet laid on the "investing" public buy anyone from financial advisors, brokers to mutual fund companies." Buying for the long term has served _me_ very well, very well indeed. Had I listened to Joe Granville or Robert Prechter or had I panicked when the candlestick formation dipped too close to Aquarius, I probably would have sold out my position in 1995, or 1991, or 1987, or 1983. A good thing I didn't give them any credit. (I read Burton Malkiel's "Random Walk Down Wall Street" in 1975-6, I simulated stock movements on my computer in 1977, and that's when I came to fully appreciate the implications of information theory for the stock market. The following year I read Graham, Dodd, and Cottle.) --Tim May

To: Jim McMannis who wrote (173253)	3/5/2003 4:44:33 AM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

Jim, <Irrationalities like..."buy and hold" and watching 80% of your retirement evaporate? ... "Buy and hold" is the biggest lie yet laid on the "investing" public buy anyone from financial advisors, brokers to mutual fund companies.> Actually, Jim, I think you missed what the real lie is. No one who holds stock really has any wealth until he or she realizes the gains by selling. Aside from that, the wealth is all theoretical, i.e. "paper wealth." So what you said above, "watching 80% of your retirement evaporate," is kind of a lie itself because it assumes that the wealth was already realized to begin with. Anyway, if you're sick and tired of these "lies," I suggest putting all your wealth into gold and burying it in some cave. Or read the Parable of the Talents in the New Testament. Tenchusatsu

To: Jim McMannis who wrote (173253)	3/5/2003 10:51:28 AM
From: chomolungma	Read Replies (1) \| Respond to of 186894

Irrationalities like..."buy and hold" and watching 80% of your retirement evaporate? You win the prize for most misleading statement. Yes, if you bought a non-diversified portfolio of only Nasdaq stocks, EXACTLY at the top and sold them EXACTLY at the bottom, you would have a loss of about 78%. If you sunk all your money into Nasdaq stocks at the top, you were the proverbial sucker that is born every day. If you bought a diversified portfolio of S & P companies, your loss would have been 50% during this period. If you had bought as far back as Jan, 1997, your compounded average return (ex dividends) would still be negative at -1.5%. HOWEVER.... Compounded rates of return since end of: 1994: 6.7% 1990: 7.3% 1980: 8.1% 1970: 6.9% 1960: 6.3% Tell me again, what's wrong with long-term investing?