03-10-2010, 04:30 AM
I hold a slight different point of view.
I read in quite a number of books, and all cited that, many studies have been conducted and been arrived at the same conclusion - it is very very difficult to beat the market in general, over a long haul of time.
If this is so, I think it is better to stick to the unbeatable - the market index itself.
Furthermore, since huge amount of time and effort need to pour into researching potential outstanding companies, but may not yield a great difference from Index Investing, I may as well spend them on other better opportunities.
Hence, for me, I think Index Investing is a very attractive and smart way to grow our wealth.
I read in quite a number of books, and all cited that, many studies have been conducted and been arrived at the same conclusion - it is very very difficult to beat the market in general, over a long haul of time.
If this is so, I think it is better to stick to the unbeatable - the market index itself.
Furthermore, since huge amount of time and effort need to pour into researching potential outstanding companies, but may not yield a great difference from Index Investing, I may as well spend them on other better opportunities.
Hence, for me, I think Index Investing is a very attractive and smart way to grow our wealth.
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My Passive Income Investing Blog
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My Passive Income Investing Blog