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

To: Michael Burry who wrote (4767)	8/22/1998 3:49:00 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78609

Sorry, but I don't understand what you are saying. I have no argument that index funds are an efficient use of funds -- that is --efficient in that they require less time than individual stock selection. Also I will give the point that they have been in general, for most everyone, a higher return provider than a portfolio selected by individual investors. Being in an index fund I would think mirrors the market, not beats it. Therefore, anyone going into such a fund can only beat those many of us who pick our own stocks (including most fund managers). Which is fine. For me, I'd rather pick my own stocks to reach my goals. In either case, the goal is not to beat the market. I'm saying having a stated goal to beat the market is spurious-not relevant for investment success if one is trying to build financial security. (Unless one is trying to achieve billionnaire status, or wanting to retire in 5 years but only starting to invest now with 10k, or has such other extreme goals) Paul.

To: Michael Burry who wrote (4767)	8/22/1998 5:34:00 PM
From: TimbaBear	Read Replies (1) \| Respond to of 78609

Please excuse me for intruding....I have been "lurking" on this thread for quite some time and believe I have read all posts in that time....but isn't one of the purposes of value investing to preserve capital?....if so, if the worst case happens and the company shuts its doors and all assets are sold, isn't that where the value investors will come out smelling like the proverbial rose?....a value investor doesn't lose money until they sell the stock at a loss.....for me, this is where the long term perspective comes into play, not short-sightedness or second guessing myself or the principles of investment that have worked so well in so many different situations. In this turbulent world, the possibility of any company shutting its doors is more than it has been for several generations and it seems as though there is more bad news to come....I think I'll hold 'em for a while and go fishing.