 Quote:
Originally Posted by Want2retire
If Buffett means what I think he means, then he is saying to DCA into a fund instead of investing the same money into it as a lump sum. That goes against what some people have suggested on the board, so I think it is interesting.
I still like the idea of DCA'ing into equity index funds because it makes sense to me. I haven't been persuaded otherwise (at least not yet).
Of course, maybe that isn't what Buffett meant. One would think that plain English would be easy enough to interpret. Also, I wonder what he means by slowly. Over a year?
|
That is what he meant, he spells it right out. Don't buy at the wrong place or the wrong time. Buy a cheap index fund and slowly DCA into.
The economy will do fine over time. Make sure you don’t buy at the wrong price or the wrong time. That’s what most people should do, buy a cheap index fund and slowly dollar cost average into it. If you try to be just a little bit smart, spending an hour a week investing, you’re liable to be really dumb.
I cannot understand the negative take on diversification-over- time from some posters here. Why would diversification over asset classes and securities be important, but not diversification over time?
As to how long, he doesn't say. But for me, one year would not be long enough. What if your year ran from March 1999 to March 2000? Your results almost 10 years later would still not look very good.
Ha
__________________
Above all, humans are political animals.
Nota bene: I am either a moron or an idiot. So don't pay any attention to anything I say or you are one too. Please consult your financial advisor, astrologer or proctologist for whatever it may be that you are seeking.
|