“I was part of the pragmatic school of indexing,” Bogle wrote in 2016.
The average investor can do only as well as the stockmarket average, he concluded.
If some investors beat the market, others must be beaten by it.
After costs, most professional investors do indeed lose to it.
—The Economist, in ‘Remembering John Bogle, patron saint of the amateur investor’
It is an old Rothschild adage that to get rich, you must buy “on the sound of cannons”.
— FT, in ‘There has never been a better time to invest in France‘
The tree emoji celebrates the patient and generous acts of planting seeds, watering them, caring for them, and then, in a generation, you have a tree.
Simple growth. With patience. (I prefer the deciduous tree instead of the evergreen, because the leaves coming in and falling off are part of the deal).
Put me down for the tree emoji.
Seth’s Blog: In defence of the tree emoji, May 9, 2017, at 01:10 AM
Two of my favorite techniques in investing are dollar cost averaging (when buying and selling) and rebalancing.
In public stocks and other marketable assets, these techniques (averaging in and out) are particularly important. I believe you can spot a long term trend and ride it. But I do not believe you can spot a market bottom or top until it is in the rear view mirror. So that is why I like to average into and out of a position over time.
Rebalancing is even more important. If you have a position that has worked incredibly well and it starts to become a very large portion of your overall portfolio, it is wise to take some of that position off the table and reinvest it in other attractive assets. This gives you more diversification, which I believe is generally a good thing, and also de-risks your portfolio from a big selloff in the largest position.
Rebalancing – AVC, May 10, 2017, at 12:09 PM