Well, that makes me glad I am not a follower of Buffett. That is just plain stupid. He may have been able to find value in bad times, but mutual funds do not have that kind of record. And Buffett has not done well holding Coke over the last 5 years, although it could have been traded for a few profits here and there. Dollar cost averaging, particularly to an index fund or any mutual fund I know of other than perhaps HSGFX, is a recipe for long periods of bad returns. Dollar cost averaging VFINX gave terrible results the last time I did the calculations.But it is easier than actually doing it right, and a great comfort to the lazy.There are many people who believe that we are in a long-term bear market. I do not know if they are right or not, and I think long-term predictions are fundamentally silly, but I do know that if they are right, the people who dollar cost average into an index fund will find it very difficult to retire.It is much better to trade with intelligence and with an eye to the direction of the market. But of course it is more work, and many people do not like work.
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