The Motley Fool Discussion Boards
Investing/Strategies / Mechanical Investing
|Subject: Re: Typical Returns & Outsourcing||Date: 12/5/2012 3:54 PM|
|Author: mungofitch||Number: 240432 of 252063|
1) What are the typical returns here compared to S&P?
Returns are all over the map.
From among those who have stuck around here for several years,
admittedly a biased sample, expectation of beating the market by a few
points per year on average over a long time frame seem very reasonable.
This doesn't sound like a big deal, but it is.
Don't get seduced by the strategies that seem to promise 40%/year, it won't happen.
The goal should be moderate to good long term outperformance.
2) Once I pick the strategy, is it possible to outsource the execution of buying and selling?
Not a lot of posts from people who have tried this.
I tried, I failed, I do it myself. It's not hard.
But in theory there might be "investment advisors" willing to do this for you.
You have to ask yourself whether it's worth what they'll charge.
They will have to have discretionary authority on your account, which
means they have potential liability, and they will want to charge for that.
3) What is the quickest way to get started?
The FAQ (look over at the right side of the page) is good, of course,
though getting a bit long in the tooth.
The best resource is simply a lot of reading here at the board.
Use this specific search engine http://www.datahelper.com/mi/search.phtml
Bookmark that, and never let it leave your side.
Search for the posts in a given year sorted descending by recs.
At the beginning, do that with "top only" checked to reduce the number of messages returns.
Another great way to get started is read until you have a pressing
question, the post the question. People around here are amazingly helpful.
I suspect you'll soon have the question "what's the best screen to use", which is a delicate question.
To skip the month of solid reading, I personally suggest YldEarnYear.
The gift that keeps on giving!
Go to this link and click "run" http://www.backtest.org/YLDEARNYEAR:SBcpeG0XcdyDcpeT35Xtr1yT...
It was invented in June 2003; you can see how it has done since then.
If you want to try to figure out what it's doing, this is the key to the data field abbreviations.
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