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Originally Posted by Eagle43
Who on this forum actually pegged Microsoft when it was nothing? Just asking?
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I owned MSFT, INTC, and DELL in the 80's when they were relatively nothing. * At the time, it was obvious to any software geek that Microsoft and Intel had a monopoly that would allow them to ride the PC growth coat-tails. * And DELL was just another proxy for the PC market.
In any case, Swedroe is just giving the standard Fama/French spiel. * My questions about that spiel are
1) Can the ScV risk premium persist? * In general, such premia get "rationalized" away. * If everybody "knows" it exists, it stops existing.
2) Is the overall stock market risk premium too low? * A lot of things suggest that people are underestimating the long-term risk and overestimating the long-term returns.
3) Is it really that hard to catch the 1% of the stocks that carry most of the return? * I like Buffett's advice: buy stocks like you only get to buy, say, 20 in your lifetime. * *Ignore the noise and concentrate on "blatantly obvious" trends and values.
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