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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (18123)	12/6/2003 12:50:01 PM
From: Spekulatius	Read Replies (3) \| Respond to of 78750

Paul & Dale, I do see value in Paul's strategy of buying a large number of individual stocks rather then index funds. One of the reasons why i do not like index funds that much is because they do follow the market with all its excess. Index funds always contain a certain percentage of Mo-Mo stocks that can hurt the performance when the market turns sour. For example if one had bought an S&P500 "ex" index fund in March 2000 without the 100 most expensive stocks per P/E ratio, my guess is that this hypothetical fund would have come far far ahead the regular S&P 500. This is essentially what I see Paul is doing. It's probably more similar to owning a value fund but with much more flexibility. One can design a strategy on betting right or on avoiding mistakes - both will beat the market if done correctly, IMO.