The Telltale Chart (2002)
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The Telltale Chart (2002)
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Re: The Telltale Chart (2002)
#2One of my favorite articles on investing, and a sobering read any time I get tempted to try active investing.
Does anybody know if there are any online tools that generates these RTM charts? For a while that's been my go-to toy project when testing out a new language/framework, but it'd be nice if there was something online integrated into legit data feeds for stock/fund performance.
Re: The Telltale Chart (2002)
#3Stock Market Investment is not a skilled ability.
Example: Buffett made the bet in December 2007, arguing that a fund holding the same stocks as found in the Standard & Poor's 500 index could beat the combined performance of a group of hedge funds over the following 10 years. Buffet won easily - https://www.usatoday.com/story/money/markets/2018/03/07/warr...
Real Life Meaning - You need to diversify so much that you just bet on America's economy and not on intelligence of a manager.
Re: The Telltale Chart (2002)
#4Stock Market Investment is not a skilled ability. Example: Buffett made the bet in December 2007, arguing that a fund holding the same stocks as found in the Standard & Poor's 500 index could beat the combined performance of a group of hedge funds over the following 10 years. Buffet won easily - https://www.usatoday.com/story/money/markets/2018/03/07/warr... Real Life Meaning - You need to diversify so much that you…
What if you do not have confidence in America's economy, long-term? What do you invest in, then?
Re: The Telltale Chart (2002)
#5Stock Market Investment is not a skilled ability. Example: Buffett made the bet in December 2007, arguing that a fund holding the same stocks as found in the Standard & Poor's 500 index could beat the combined performance of a group of hedge funds over the following 10 years. Buffet won easily - https://www.usatoday.com/story/money/markets/2018/03/07/warr... Real Life Meaning - You need to diversify so much that you…
What if you do not have confidence in America's economy, long-term? What do you invest in, then?
Gold, or perhaps, CNY/Yuan
Re: The Telltale Chart (2002)
#6Stock Market Investment is not a skilled ability. Example: Buffett made the bet in December 2007, arguing that a fund holding the same stocks as found in the Standard & Poor's 500 index could beat the combined performance of a group of hedge funds over the following 10 years. Buffet won easily - https://www.usatoday.com/story/money/markets/2018/03/07/warr... Real Life Meaning - You need to diversify so much that you…
It is a skilled ability (price discovery), just not when many other people are also doing it.
The real benefit to passive, indexed investments is not just lower fees, but the ability to hold onto your portfolio without losing sleep. Loosely paraphrased from Bill Bernstein: If your active fund has a bad year or five, you don't know whether it's the fund manager's incompetence or just a rough market. In a passive, indexed fund, you can be sure that it's not the fault of an incompetent manager, thus letting you feel secure in holding onto your investments through thick and thin. Churning your portfolio and paying capital gains tax all along the way is a recipe for underperforming the market.
Re: The Telltale Chart (2002)
#7Stock Market Investment is not a skilled ability. Example: Buffett made the bet in December 2007, arguing that a fund holding the same stocks as found in the Standard & Poor's 500 index could beat the combined performance of a group of hedge funds over the following 10 years. Buffet won easily - https://www.usatoday.com/story/money/markets/2018/03/07/warr... Real Life Meaning - You need to diversify so much that you…
What if you do not have confidence in America's economy, long-term? What do you invest in, then?
Note that the best economies don't always equate to the best performing capital markets. Investors in China lost quite a bit of money during periods of immense growth.
If you don't have confidence in America, you could diversify by holding a portion of money in indexed international funds. But be careful, no one can predict the future! Best to hold a little bit of everything.
Re: The Telltale Chart (2002)
#8Earlier quoted context omitted.
What if you do not have confidence in America's economy, long-term? What do you invest in, then?
Note that the best economies don't always equate to the best performing capital markets. Investors in China lost quite a bit of money during periods of immense growth. If you don't have confidence in America, you could diversify by holding a portion of money in indexed international funds. But be careful, no one can predict the future! Best to hold a little bit of everything.
Yup. The "great" thing about the US is that it's a large developed country with a strong rule of law, but at the same time also perhaps the most corporatist country on earth, allowing companies to act with impunity and lobby when needed, all of which leads to big and sustained profits.
Compare this to, e.g. Europe.
Re: The Telltale Chart (2002)
#9Seems to be a lot of investing content on HN lately. A contrarian indicator perhaps? ;)
In any case, I posted these links in a previous thread and it seemed to be popular so I'll post again--if you enjoy this you'll probably enjoy the http://bogleheads.org forum (one of the oldest and best investing forums on the web based around Bogle's philosophy) and also the http://capitalminded.com newsletter (kind of new, but the last few weeks I've read are like Matt Levine's money stuff for index fund investors, really good).
Re: The Telltale Chart (2002)
#10Earlier quoted context omitted.
Note that the best economies don't always equate to the best performing capital markets. Investors in China lost quite a bit of money during periods of immense growth. If you don't have confidence in America, you could diversify by holding a portion of money in indexed international funds. But be careful, no one can predict the future! Best to hold a little bit of everything.
Yup. The "great" thing about the US is that it's a large developed country with a strong rule of law, but at the same time also perhaps the most corporatist country on earth, allowing companies to act with impunity and lobby when needed, all of which leads to big and sustained profits. Compare this to, e.g. Europe.
>with a strong rule of law
Not so certain these days.