UnThreaded | Threaded | Whole Thread (37) | Ignore Thread Prev | Next
Author: joelxwil 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 79105  
Subject: Re: What's wrong with my calcs? Date: 10/3/2004 7:53 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (37) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
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:
Simulations Plus

A Shorting Lesson Learned
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.