Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: Fish409 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 265  
Subject: Re: Are the head Fools still fools? Date: 9/18/1999 12:30 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
One of the best articles I've seen regarding the volatility (and risk)of stocks is Peter Lynch's "Fear of Crashing" in the September 95 Worth magazine. His basic message is that although being invested in stocks carries a risk, the bigger risk is NOT investing because of a fear of crashing. He goes through the big up & down moves in the market since 1954, demonstrating that if you were out of the market (because of fear) for the 40 most profitable months over the 40 years from 1954-95, your return drops from 11.4% to 2.7%, and your savings account outperforms your brokerage account. Bottom line: Put 100% of your money in stocks and keep it in.
I've followed this advice successfully since 1995. In fact, I don't even keep an emergency fund - I have the largest home equity line of credit possible, and I use it as my emergency fund, allowing me to keep my emergency $s invested.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next


Read the Book
Pick up your copy of Rule Breakers, Rule Makers today in the Fool bookstore.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
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:
Berkshire Hathaway

Collected Mungofitch Quotes
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 Glassdoor #1 Company to Work For 2015! 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.