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URL:  https://boards.fool.com/fmo-wrote-you-cannot-apply-the-lessons-of-history-17668225.aspx

Subject:  Re: OT: KISS Date:  8/10/2002  4:23 PM
Author:  galeno Number:  73411 of 882350

FMO wrote:
You cannot apply the lessons of history to the distribution phase and ignore those very same lessons as they apply to the more difficult problem of accumulating assets in the first place.

The papers are full of stories right now about people who are delaying their retirements due to the effect of short term market performance on their strategies calling for heavy investment in equities. Were they stupid for following the course you recommend, or merely unlucky?


1. The asset accumulation phase is EASIER than the distribution phase. The lessons of history are unchanged for either phase.

2. The papers are full of stories about people who started investing at the top of the market bubble into single stocks with NO earnings and who thought the market would go up 20% a year indefinately. I call them UNREALISTIC. These people knew just enough to be dangerous to themselves and others <grin>.

3. If we want to talk about crap-shoots, then let's talk real estate. Real estate is a totally LOCAL phenomenon. In MOST places in the USA with JOBS, owning real estate is FAR MORE expensive than renting it is. Like intercst and I have said before, smart FIREs treat RE as an EXPENSE, NOT as an ASSET.
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