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

To: porcupine --''''> who wrote (804)	12/27/1998 1:38:00 PM
From: cfimx	Respond to of 4691

I agree porc. But here is a prediciton, I think sometime starting in the next decade (maybe in the next year), it will be HARD for the average fund NOT to beat the index.

To: porcupine --''''> who wrote (804)	12/27/1998 2:10:00 PM
From: Michael Burry	Respond to of 4691

Great comments twist and porc. Thanks, Mike

To: porcupine --''''> who wrote (804)	12/28/1998 2:33:00 AM
From: Bob Martin	Respond to of 4691

> twist: Indexing, as you point out, is a buy-high, sell-low strategy. As such, it will necessarily disappoint going forward, at least in relation to the recent past. < Not necessarily. You only "sell low" if the stock is dropped from the index. If there is a general market decline, all stocks drop, so no stock will be particularly picked to drop from the index. A stock is only "sold low" if it's dropped and another, faster growing stock replaces it. That seems like a good move to me. NOTE: There is one other "sell low" possibility - if a fund experiences a lot of sudden redemptions, and stocks must be sold to accomodate. However, this phenomenon can affect ANY mutual fund (open-ended) so if this really bothers you, you shouldn't be invested in any funds. Bob