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Subject:  Re: Index fund investing versus stock selection Date:  10/6/2007  2:50 PM
Author:  SethNC Number:  59454 of 90502

I just posted a long list of funds that have out-performed the S&P 500.

I don't think many people would consider 1-2 years the long-term. Many funds beat their index over such a short period. Very few beat their index every year over a 5 year period and almost zero funds beat their index every year (or even on average) over a 10 year period.

To the OP: I would agree with the other advice you have received. Put the bulk of your money in various index funds and then use 20%-30% as "play" money.

You mention that you may be above average. That very well may be true, but above average is not good enough. There are only a handful of managers ever to beat their index every single year for a long period of time. Peter Lynch and Bill Miller being two of the most notable.
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