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.

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

To: Grommit who wrote (54671)	1/1/2015 3:57:26 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78618

I disagree with the article under the link you posted. I believe in Buffett when he says that he could do 50% annual with small amounts. I am sure that a good investor can do 20%+ annual with small amounts (up to 100M or so). Ignoring benchmarks is stupid when you can put money into index fund and get that return instead of underperforming for years. It is even more stupid if you could put 80% of money into index fund, 20% into cash for a crash and still outperform your "active" strategy. "I don't need to outperform benchmark" is just a rationalization of poor returns most of the time. (This is not aimed at you personally, I have no clue what your returns are).

To: Grommit who wrote (54671)	1/1/2015 4:42:29 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78618

I can live off my dividends, so cap gain is irrelevant I'm not trying to put you on the spot, but I think this kind of thinking is going to be part of the next crash. A lot of people have poured into divvie stocks because "they only care about divvies and the cap gains are irrelevant". This is all good and nice until the stocks drop and they cut divvies and suddenly you have much less capital to reemploy elsewhere. You are probably going to handle this. But I am pretty sure that a lot of people won't. And once you get into fear, it could lead to panic. BTW, it's not you I am railing against. A rather naive friend of mine recently sent me a link to investment "strategy" of buying 10 4%-yielding stocks with expectation that divvies will only grow and any stock declines are temporary and "irrelevant". Where did I hear this argument before? Ah, the real estate not so long ago....