PF&Investing » bull market http://pfinvesting.com common sense in personal finance and investing Sun, 27 Mar 2011 01:04:44 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Buffett on the best investment idea http://pfinvesting.com/2008/05/08/buffet-best-investment-idea/ http://pfinvesting.com/2008/05/08/buffet-best-investment-idea/#comments Thu, 08 May 2008 12:00:11 +0000 Roy http://localhost/2008/05/08/buffet-best-investment-idea/ In the recent annual meeting of the Berkshire Hathaway shareholders held last Saturday, CEO Warren Buffett was asked about the best investment idea he would recommend to an investor in his 30′s. In his own words:

I would just have it all in a very low-cost index fund from a reputable firm, maybe Vanguard. Unless I bought during a strong bull market, I would feel confident that I would outperform…and I could just go back and get on with my work.


Coming from the most famous “stock picker” in the world, such drumrolling for index investing may come as a surprise to some. But as I said in this post, he has been advising this for many years, because with index funds you “would feel confident that (you) would outperform” and “get on with (your) work”.

An estimated 30,000+ strong crowd assembled in this meeting to hear from the Sage of Omaha in these troubling financial times. His main message was that it is impractical to expect an earning of 7 to 10% with publicly traded stocks today. Contrast that with past returns: between 1985 and 2004 a simple portfolio of S&P 500 Index fund would have earned 13.2%!.

You can read the meeting excerpt here and here.

]]> http://pfinvesting.com/2008/05/08/buffet-best-investment-idea/feed/ 0 Bearish run in a bullish market http://pfinvesting.com/2007/07/30/bearish-bullish/ http://pfinvesting.com/2007/07/30/bearish-bullish/#comments Mon, 30 Jul 2007 23:36:33 +0000 Roy http://manojitroy.com/blog/2007/07/30/bearish-run-in-a-bullish-market/ Last week ended with the second major stock market slump of this click to enlarge year that has barely gone through its first half. After a turbo-charged run over the last 5 months (since the first slump of ’07), during which Dow Jones Index rose 2000 points to cross 14000 for the first time on July 19, it dropped 700 points in the space of only 7 days since then (see picture). All the other major US market indexes also moved in a similar way, as expected (here is S&P500 Index). Someone in Wall Street made a comment that the bull run has finally ended, even though the bull market is still on. Go figure!

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