Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
I just bought VFINX today
Old 03-05-2007, 04:58 PM   #1
Recycles dryer sheets
 
Join Date: Mar 2007
Posts: 79
I just bought VFINX today

And then I sold it, because I realized I am in fact smarter than the indexers

YTD -1.1%, take that haystackers

VGTSX, VFINX both down over 2.5%
__________________

__________________
AirJordan is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: I just bought VFINX today
Old 03-05-2007, 05:20 PM   #2
Full time employment: Posting here.
 
Join Date: Jan 2007
Posts: 585
Re: I just bought VFINX today

Hey AirJordan is that Hot Air ?
__________________

__________________
Cut-Throat is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 05:38 PM   #3
Full time employment: Posting here.
 
Join Date: Sep 2006
Posts: 608
Re: I just bought VFINX today


PLEASE don't feed the trolls !

__________________
JohnEyles is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 05:42 PM   #4
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 199
Re: I just bought VFINX today

he actually has a point about the index funds.
__________________
newyorklady is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 05:44 PM   #5
Full time employment: Posting here.
 
Join Date: Mar 2005
Posts: 699
Re: I just bought VFINX today

Quote:
I just bought VFINX today
And then I sold it
Brilliant.
__________________
bpp is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 05:46 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: I just bought VFINX today

Quote:
Originally Posted by newyorklady
he actually has a point about the index funds.
What, that he's smarter than an index fund?
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 05:56 PM   #7
Full time employment: Posting here.
 
Join Date: Mar 2005
Posts: 699
Re: I just bought VFINX today

Quote:
Originally Posted by 3 Yrs to Go
What, that he's smarter than an index fund?
No man, don't you get it? His strategy of day-trading the indices has only lost half as much as a buy-and-holder would have over the past two months. Can't argue with a record like that.
__________________
bpp is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 06:06 PM   #8
Confused about dryer sheets
 
Join Date: Mar 2007
Posts: 8
Re: I just bought VFINX today

Actually I have VFINX as a 401k option. Got out at $118 and watched it blow past $120. Anyone have a buy target on this fund?
__________________
shanjwa5 is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 06:25 PM   #9
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: I just bought VFINX today

C-T -

How about that pic you posted that one time - "How about a nice glass of STFU?" Now is as good of a time as ever.

Let me help you with that!

__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 06:35 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: I just bought VFINX today

Quote:
Originally Posted by AirJordan
And then I sold it, because I realized I am in fact smart than the indexers

YTD -1.1%, take that haystackers

VGTSX, VFINX both down over 2.5%
Avocado...



__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 06:43 PM   #11
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: I just bought VFINX today

__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 07:12 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,263
Re: I just bought VFINX today

Saw this today.... bold added by me... but they got AJ!!!

PAUL B. FARRELL
You're saving 'too much' for retirement!


As a result, Main Street is now in a no-win situation. Jack Bogle's famous "Iron Law of the Markets" puts this assets-based monster in context with his new "Little Book of Common Sense Investing:" "Trying to beat the stock market is theoretically a zero-sum game (for every winner, there must be a loser), but after the substantial costs of investing are deducted, it becomes a loser's game."
Bogle has had a consistent solution to the "Iron Law" dilemma for three decades: "The simplest and most efficient investment strategy is to buy and hold all of the nation's publicly held businesses at very low cost. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair share of stock market returns." We've put this strategy into action with our lazy indexed portfolios. See how the lazy portfolios have beaten the market.
Unfortunately, Wall Street understands the "Iron Law" better than Bogle! Wall Street knows it cannot charge big management fees off low-cost index funds. So Wall Street is relentlessly hypnotizing investors into believing that actively managed funds beat the indexes even though about 80% fail to do so, largely because their average expense ratios are 10 to 15 times the fees charged by index funds.
__________________
Texas Proud is online now   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 07:15 PM   #13
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 199
Re: I just bought VFINX today

then why do people buy managed funds? this makes no sense to me at all.
__________________
newyorklady is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 07:18 PM   #14
Full time employment: Posting here.
 
Join Date: Jan 2007
Posts: 585
Re: I just bought VFINX today

Quote:
Originally Posted by newyorklady
then why do people buy managed funds? this makes no sense to me at all.
They are smart! - Like AJ!
__________________
Cut-Throat is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 07:37 PM   #15
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 199
Re: I just bought VFINX today

really, i am serious. wouldn't a good manager be able to beat an index fund? wouldn't a manager be able to spot problems with individual stocks, etc?
__________________
newyorklady is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 07:44 PM   #16
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: I just bought VFINX today

Quote:
really, i am serious. wouldn't a good manager be able to beat an index fund? wouldn't a manager be able to spot problems with individual stocks, etc?
The problem with good money managers (and those available to the public) is that they are saddled with huge inflows of capital from people seeking higher returns - i.e. chasing "hot" money - and it usually forces the mm to A) buy overpriced stocks and B) reduces the number of potential investments - a huge fund can only make sizable stakes in huge companies. Skill is not always the Achilles' heel.
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 08:04 PM   #17
Full time employment: Posting here.
 
Join Date: Jan 2007
Posts: 585
Re: I just bought VFINX today

Quote:
Originally Posted by newyorklady
really, i am serious. wouldn't a good manager be able to beat an index fund? wouldn't a manager be able to spot problems with individual stocks, etc?
I suggest you read "The four Pillars of Investing" by William Berstein. All of your answers will be in there.
__________________
Cut-Throat is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 08:06 PM   #18
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: I just bought VFINX today

Quote:
Originally Posted by Texas Proud

Unfortunately, Wall Street understands the "Iron Law" better than Bogle! Wall Street knows it cannot charge big management fees off low-cost index funds. So Wall Street is relentlessly hypnotizing investors into believing that actively managed funds beat the indexes even though about 80% fail to do so, largely because their average expense ratios are 10 to 15 times the fees charged by index funds.
There will always be people who think they can be the other 20%.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 08:15 PM   #19
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: I just bought VFINX today

Quote:
Originally Posted by newyorklady
really, i am serious. wouldn't a good manager be able to beat an index fund? wouldn't a manager be able to spot problems with individual stocks, etc?
The market is very efficient; that is, as soon as info becomes available, everyone can act on it immediately. Thus, it is very, very difficult to exploit the information unless you have access to it before everyone else. There will always be managers who can beat the market, but can the same managers beat it on a consistent basis (or year after year)? The answer is simply no. It will be some other manager's turn next. Once they do, money will follow them.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: I just bought VFINX today
Old 03-05-2007, 08:17 PM   #20
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 329
Re: I just bought VFINX today

Quote:
Originally Posted by newyorklady
really, i am serious. wouldn't a good manager be able to beat an index fund? wouldn't a manager be able to spot problems with individual stocks, etc?
NYL
You might want to read the Four Pillars by Bernstien or Bogle's books. The short story is:

Efficient Market Hypothesis
This is a large part of the theoretical argument for passive management and against persistence of mutual fund returns. The developed world's equity and bond markets are quite efficient. This means that there are many intelligent rational people trying to maximize their wealth and that relevant information about securities travels extremely quickly. In other words, everybody else already knows everything you think you know about a particular security and they have already taken advantage of that information (and eliminated any opportunity that may have briefly existed to take advantage of that information) before you (and I) get a chance to.

Also check the reference papers at the link below:
http://altruistfa.com/readingroomart...fficientMarket

-h
__________________

__________________
Hope springs eternal in the human breast:Man never is, but always to be blest.
The soul, uneasy and confined from home,Rests and expatiates in a life to come.
lswswein is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Finally bought a car Sheryl Other topics 16 04-03-2007 10:17 AM
I can't concentrate on work today! laurence Young Dreamers 15 06-01-2006 04:21 AM
Got a letter from Fidelity today... cute fuzzy bunny FIRE and Money 19 04-11-2006 06:47 PM
Anyone Else Make a Million Bucks Today? JPatrick FIRE and Money 15 04-10-2006 11:10 AM
Snowing today - FUN; 80 degrees - Boring. Guest from New England Life after FIRE 8 03-17-2004 04:35 PM

 

 
All times are GMT -6. The time now is 09:33 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.