UnThreaded | Threaded | Whole Thread (40) | Ignore Thread Prev | Next
Author: warrl Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: Index Fund vs. Buying Individual Stocks Date: 11/24/2005 5:34 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1

And yes, people who buy and hold - particularly buy and hold index funds - are absolute idiots.


There are MANY ways to make money in stocks. What they all require, that many people lack, is unemotional discipline.

Probably the easiest way to achieve unemotional stock-market discipline is to set up regular automatic investments in an index fund and just hold the stuff until you need the money. This discipline is EXTREMELY likely to make you money... although it may take a while. (I don't know if I would recommend it as a good choice to someone who is 5 years from retirement and just starting to invest. 20 years to go, yes, without hesitation.)

There are other methods that are more reliable in the short term and faster in the long term. But they require greater discipline - it's easier to not be upset about short-term fluctuations if you never look at them than if you look at them weekly or even daily. And looking at how they would have done in the long-term past, so one can estimate the likelihood of long-term success, is harder.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (40) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.