Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Yale's top investor belongs on ER Forums
Old 02-18-2008, 12:45 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,016
Yale's top investor belongs on ER Forums

http://www.nytimes.com/2008/02/17/bu...=1&oref=slogin
__________________

__________________
Meadbh 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!

Old 02-18-2008, 06:07 PM   #2
Recycles dryer sheets
 
Join Date: Oct 2005
Posts: 325
seems kind of silly though.

"I can beat the market with all my fancy stock and manager picking, but no one else can so they should just invest in index funds."
__________________

__________________
CybrMike is offline   Reply With Quote
Old 02-18-2008, 06:08 PM   #3
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,825
Quote:
Originally Posted by Meadbh View Post
That was encouraging! Thanks, Meadebh.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 02-18-2008, 06:10 PM   #4
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,825
Quote:
Originally Posted by CybrMike View Post
seems kind of silly though.

"I can beat the market with all my fancy stock and manager picking, but no one else can so they should just invest in index funds."
I thought he was implying, "Nobody can beat indexing, but I'm not going to SAY that point blank since people who make their money in this industry would take offense".
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 02-18-2008, 06:22 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,016
I interpreted his discussion as caution on the risks, fees and taxes associated with alternative investments such as hedge funds, except for the megarich. For Mr or Ms Average, he is clearly in favour of indexing.
__________________
Meadbh is offline   Reply With Quote
Old 02-18-2008, 07:08 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
Quote:
Originally Posted by CybrMike View Post
seems kind of silly though.

"I can beat the market with all my fancy stock and manager picking, but no one else can so they should just invest in index funds."
Now now - remember Clint Eastwood - "A man's got to know his limitations."

So how many posting here live/breathe it 24/7 and have it as their day job and are given many millions of other people's money and thus can assemble/gain access to the skill sets required to pull it off.

Given male hormones - you know you're gonna try. Look how many golf.

Index funds maybe the horse I rode in on - doesn't mean I haven't been putzing for forty years(not golf) - but no book, nor do I book speaking engagements or give interviews.

heh heh heh - we do have a few financial types who post here. As for me - Tiger Woods and Warren Buffett can breath easy. .
__________________
unclemick is offline   Reply With Quote
Old 02-18-2008, 08:25 PM   #7
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Quote:
Originally Posted by CybrMike View Post
seems kind of silly though.

"I can beat the market with all my fancy stock and manager picking, but no one else can so they should just invest in index funds."
If you compare his resources to those of the average professional investor let alone individual it doesn't seem silly at all.
__________________
saluki9 is offline   Reply With Quote
Old 02-18-2008, 08:38 PM   #8
Recycles dryer sheets
bigla's Avatar
 
Join Date: Aug 2007
Location: Mt. Pleasant
Posts: 138
I listened to Bob Brinker in Jan. 2000 and got out of the market, sving my portfolio from a severe beating. I listened to him again in Mar. 2003 when he said get back in and we had a great run until recently. He still remains fully invested and I am more likely to stay the course with my diversified portfolio than not. But like Unclemick says, sometimes "hormones" a/o emotions lead us to make decisions.
Larry
__________________
Retired early and loving it.
bigla is offline   Reply With Quote
Old 02-19-2008, 05:21 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Quote:
Originally Posted by Want2retire View Post
I thought he was implying, "Nobody can beat indexing, but I'm not going to SAY that point blank since people who make their money in this industry would take offense".

correction: no one can beat indexing in an up market
__________________
mathjak107 is offline   Reply With Quote
Old 02-19-2008, 08:56 AM   #10
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
I found it rather interesting that he criticized Jim Cramer who is basically suggesting that people can achieve the same levels that fund managers do.
Imagine, finding FSLR at $74, and waiting for a few weeks to get out at $214. Yeah, I guess I'm a fool.
Not to say that getting some GOOG and selling it at a small loss ($800) didn't hurt a little. So, yes I'm not perfect (much like the mutual fund managers).
I guess I'll have to see what happens over this year.
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 02-19-2008, 09:39 AM   #11
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Quote:
Originally Posted by myself View Post
I found it rather interesting that he criticized Jim Cramer who is basically suggesting that people can achieve the same levels that fund managers do.
Imagine, finding FSLR at $74, and waiting for a few weeks to get out at $214. Yeah, I guess I'm a fool.
Not to say that getting some GOOG and selling it at a small loss ($800) didn't hurt a little. So, yes I'm not perfect (much like the mutual fund managers).
I guess I'll have to see what happens over this year.
Do it for 20 or so years and then come back to me.
__________________
saluki9 is offline   Reply With Quote
Old 02-19-2008, 09:40 AM   #12
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Quote:
Originally Posted by mathjak107 View Post
correction: no one can beat indexing in an up market
Now all you need to do it tell me where the market is heading.

That should be easy!
__________________
saluki9 is offline   Reply With Quote
Old 02-19-2008, 10:12 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by mathjak107 View Post
correction: no one can beat indexing in an up market
Gotta agree 100% with that..........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 02-19-2008, 10:17 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Want2retire View Post
I thought he was implying, "Nobody can beat indexing, but I'm not going to SAY that point blank since people who make their money in this industry would take offense".
That's not what he was saying..........he's saying he has tools that most of us can only dream about, and unheard access to fund managers and equity analysts.

I doubt he cares about the general financial advising industry........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 02-19-2008, 10:42 AM   #15
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
Quote:
Originally Posted by saluki9 View Post
Do it for 20 or so years and then come back to me.
In 20 years or so, I'll be in retirement (although I probably won't declare retirement until 67.

Besides, I believe that fund managers effectively direct the markets, since they have such large funds to redirect at a whims notice.
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 02-19-2008, 10:45 AM   #16
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
Quote:
Originally Posted by saluki9 View Post
Now all you need to do it tell me where the market is heading.

That should be easy!
If you want a guestimate (much like anyone else can give), I'd say the market is heading lower. It'll probably bottom out when the DJIA hits about $11,500, but that won't be until just before the next Fed meeting.
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 02-19-2008, 10:49 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,686
Quote:
He says it is fruitless for individual investors to pick stocks. “There is no way that an individual can go out there and compete with all these highly qualified and compensated professionals,” Mr. Swensen said.
This is where I disagree with individuals such as Mr. Swenson. Some such as Bernstein are going further, suggesting the government should ban Wall Street investing in retirement accounts and only allow indexing as it is an impossibility to beat the market as an individual.

The common refrain from the doubters is as Suluki9's who state "show me how you beat it after 20 years" Could someone please show me what Bernstein or Swenson were suggesting 20 years ago? Has anyone followed the same indexing strategy for 20 years? I know that back through 1995-1998 the prevalant suggestion from indexers was that a mixture of bonds and S&P500 would outperform any managed fund due to their international exposure and growth potential. Now 10 years later we are at an annual rate of about 5 percent return for the S&P500, different mixes are showing up.

The ability to be able to select stocks without having to justify it to an investor allows for returns to be earned by those with the patience and discipline to do so with very good dividends in my opinion. With the internet and the ability to look up SEC filings and listen to the management on conference calls live as they get the same answers to questions from the Wall Street "professionals" has made the modern era even more profitable to the individual investor.


Probably the best thing I think Bernstein has written in his 4 books and thousands of words in his blogs, postings and writings is not to listen to anyone else's opinion but your own, of course Bernsteing would prefer you decide this after you pay to hear what he has to say, by ordering some of his writings online at Amazon.com.
__________________
Running_Man is offline   Reply With Quote
Old 02-19-2008, 11:17 AM   #18
Thinks s/he gets paid by the post
DblDoc's Avatar
 
Join Date: Aug 2007
Posts: 1,224
Quote:
Originally Posted by saluki9 View Post
Now all you need to do it tell me where the market is heading.

That should be easy!
In 20 years it will be up.

DD
__________________
DblDoc is offline   Reply With Quote
Old 02-19-2008, 12:08 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
The common refrain from the doubters is as Suluki9's who state "show me how you beat it after 20 years" Could someone please show me what Bernstein or Swenson were suggesting 20 years ago? Has anyone followed the same indexing strategy for 20 years? I know that back through 1995-1998 the prevalant suggestion from indexers was that a mixture of bonds and S&P500 would outperform any managed fund due to their international exposure and growth potential. Now 10 years later we are at an annual rate of about 5 percent return for the S&P500, different mixes are showing up.


5% for 10 years is NOT a good investment return, you could have made that in CD's or Treasuries........where's the reward for the risk? Maybe with reinvested dividends,you're up to 5.8%.......still not a good return............
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 02-19-2008, 12:41 PM   #20
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,686
Quote:
Originally Posted by FinanceDude View Post


5% for 10 years is NOT a good investment return, you could have made that in CD's or Treasuries........where's the reward for the risk? Maybe with reinvested dividends,you're up to 5.8%.......still not a good return............
My point is that is what indexers were pointing out in 96-97 as a VERY GOOD investment. This is not my return over that period.
__________________

__________________
Running_Man 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
New to the forums mortgagesum Hi, I am... 2 10-02-2007 01:37 PM
How Should Forums (Not This One, But Forums in General) Be Run? TromboneAl Other topics 15 07-03-2007 08:34 PM
How did I do it without the ER forums? csf13 Hi, I am... 4 06-26-2007 07:00 PM
Other Forums? devo Other topics 19 03-29-2007 02:56 PM
Yale's Swenson on portfolios donheff FIRE and Money 24 10-09-2006 10:04 PM

 

 
All times are GMT -6. The time now is 04:43 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.