Comments on: Investing and the Time You Have

By: Caroline

Caroline — Sat, 06 Mar 2010 15:39:25 +0000

Thanks Trent – I’d started to waver on my conviction to go with index funds, but in truth I hate even reading anything about investments. Even index funds. I love reading about personal finances, but my brain shuts down when it comes to investing.

By: Daddy Paul

Daddy Paul — Tue, 02 Mar 2010 17:45:43 +0000

Investing is my passion and I still would never pick individual stocks. I do pick great funds and I do rotate sectors and time the markets.

By: Sean

Sean — Mon, 01 Mar 2010 17:17:37 +0000

Agreed with the previous two.

You can certainly pick individual stocks that beat the market, but you’re not going to outperform the market after taxes and trading costs; not unless you are willing to take additional risk.

And if that’s the case, you might as well allocate to an emerging market index fund.

So it’s nice that you’re being polite to a reader who disagrees with you, but he’s simply wrong.

By: Brent

Brent — Mon, 01 Mar 2010 16:52:16 +0000

Absolutely with Dangerman. If you actually could (even with lots of homework) beat the market with consistency and in large enough numbers to make it statistically significant. The mutual fund market would be WAY more appealing. Because they don’t work in the relatively small amounts. Any even they can’t beat the average. some of them do, but some lose. The average is just what we would expect. Re balance regularly, dollar cost average, diversify, but don’t think you are any smarter than anyone else out there. You don’t want to be proven wrong.

By: Dangerman

Dangerman — Sun, 28 Feb 2010 21:22:12 +0000

“I absolutely believe that individuals (who are investing relatively small amounts) absolutely can beat the market to a certain degree with significant homework.”

Although I admit the attempt to find a middle ground, to be reasonable and all, but this statement is scientifically falsifiable. EVERY study of the market shows it to be false: people only outperform to the extent random statistics predict.

By: J.N.Urbanski

J.N.Urbanski — Sun, 28 Feb 2010 16:21:47 +0000

I think, for people who have little time, it’s more important to keep abreast of current affairs that studying historical stock data. Even slight changes in governmental policy can make your stock go into the toilet at a moment’s notice. You can read worthy publications in the doctor’s office or on public transportation, for example. Getting a world view is more important than studying minutiae.

By: Moby Homemaker

Moby Homemaker — Sun, 28 Feb 2010 14:30:37 +0000

Have you ever been to an OTB or racetrack??? These people spend HOURS upon HOURS on researching their BETS. It’s a dedication to their “hobby”.

I think this article has it right–make investing your “hobby”–like the old guys at the race track. In the end–it’s really the same thing.