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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75375  
Subject: Re: Index fund investing versus stock selection Date: 10/6/2007 4:24 PM
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..."You're young, invest aggressively, you can deal with the risk and volatility since you won't need this money for 10+ years. Your best bet is to build a small portfolio of high-quality growth stocks".....

You also need to consider that if you loose $10,000 now that that loss will also cut down your retirement money dramatically since it will not compound for many decades. For example a stock portfolio might be expected to double every ten years(after inflation). If you are 25 now, by the time you are 85 that $10K could have doubled 6 times and be worth $320K in today’s dollars!.

...Although I'm disheartened at the level and tone of advertising that these services have developed,...

Go to a used book store or library and check out a Motley Fool book from the mid to late 90’s and look what they had to say about newsletters back then.

...I've been very impressed by the quality of these products...

Over the years they have probably had 20 different portfolios or newsletters. It is not surprising that the ones that remain look good. Google “survivorship bias”.

Over the last five years the NASDAQ 100 has more than doubled after the dot com crash.

http://finance.yahoo.com/q/bc?s=QQQQ&t=5y

One of my pet peeves about the advertisements is that sometimes compare their results to the S&P 500 index but lots of the stock that are recommended are not part of the S&P 500


Greg
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