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Mark Hulbert: The Virtues Of Long-Term Investing — And How To Live Them
With unlimited access to market data and its interpretations we are all smarter investors these days then several decades ago. That universal availability of information makes it more difficult to get and maintain an edge in terms of market rewards. The strong competition just operates to neutralize any perceived expert advantage. The performance data for active fund management demonstrates that leveling effect.
One approach is just to assemble an Index portfolio. But that's equivalent to surrendering. Another attractive alternative is to assemble two portfolios: one that is Index based and a second portfolio that reflects your current judgement of market conditions and probabilities. The first portfolio is held for the long term while the second portfolio is subject to trade. Each investor decides the percentages in each portfolio.
I practice this second approach. My long term Index portfolio is outperforming my trading portfolio. But I am learning. That second portfolio serves as an opportunity. And as Bonaparte said: " Ability is of little account without opportunity. ". A little luck would be helpful. I dream the dream.
Comments
With unlimited access to market data and its interpretations we are all smarter investors these days then several decades ago. That universal availability of information makes it more difficult to get and maintain an edge in terms of market rewards. The strong competition just operates to neutralize any perceived expert advantage. The performance data for active fund management demonstrates that leveling effect.
One approach is just to assemble an Index portfolio. But that's equivalent to surrendering. Another attractive alternative is to assemble two portfolios: one that is Index based and a second portfolio that reflects your current judgement of market conditions and probabilities. The first portfolio is held for the long term while the second portfolio is subject to trade. Each investor decides the percentages in each portfolio.
I practice this second approach. My long term Index portfolio is outperforming my trading portfolio. But I am learning. That second portfolio serves as an opportunity. And as Bonaparte said: " Ability is of little account without opportunity. ". A little luck would be helpful. I dream the dream.
Best Wishes