Posts with keyword buy-and-hold→
In Part I, I discussed the two main and opposing theories of investing – efficient market theory (EMT) and fundamental analysis (FA). Here I talk about which one of these two can be thought as “correct”.
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Keeping it simple
“I did not know enough to be scared”
69-year old Earl Crawley
, while making $20,000 a year as a parking-lot attendant, still amassed over $500,000 in investment asset. His secret? Two, in fact. The first is his good old habit of saving every “nickel and dime”, and the second is his lack of investing knowledge, summed up in his quote that I borrowed above.
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A new car every 15 yrs, or a used car every 5 yrs?
Consumer Reports magazine recently suggested that driving the same car for at least 15 years can save you almost $31,000. That is a nice little sum to boost your retirement savings, or send your kid to a better college. The key points to note are:
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Bogle-quote on market swings
In a recent BusinessWeek interview on current market volatility, John Bogle – index fund guru and Vanguard founder – made the following comments:
In the long run, investing is not about markets at all. Investing is about enjoying the returns earned by businesses. And the stock market is nothing but a giant distraction in that quest to acquire returns that business earns.
Without telling anything new, this quote still reminds us of the big picture of investing: a buy-and-hold strategy for the long haul is the only way to escape the ravages of market swings, and to benefit from the slowly (and surely) growing economy. I recommend reading the entire interview.
