Early Retirement & Financial Independence Community - View Single Post - Why most of us should diversify-- Warren Buffett

megacorp-firee · 02-29-2008, 11:48 PM

I can't remember where on this board it was stated, but it was a quote that went along the lines of, missing the top x number of up market days and you will miss out on the majority of the upswings that will make your portfolio grow.
I have also seen statistics on yty growth of mutual funds versus investors actual growth rates. The latter is less than the former due to investors buying and selling at the wrong times.

So my leaning is to get fully invested (lump sum) if I am moving money around in my portfolio. Of course I DCA'ed when I was w*rking with monthly contributions to my 401K and taxable accounts. but it was more of a 'forced DCA' since i was paid on a semi-monthly basis.

If I received an inheritance, I would most probably lump sum invest it to keep my AA in line.

02-29-2008, 11:48 PM	#19
megacorp-firee Thinks s/he gets paid by the post Join Date: Apr 2007 Posts: 1,169	I can't remember where on this board it was stated, but it was a quote that went along the lines of, missing the top x number of up market days and you will miss out on the majority of the upswings that will make your portfolio grow. I have also seen statistics on yty growth of mutual funds versus investors actual growth rates. The latter is less than the former due to investors buying and selling at the wrong times. So my leaning is to get fully invested (lump sum) if I am moving money around in my portfolio. Of course I DCA'ed when I was w*rking with monthly contributions to my 401K and taxable accounts. but it was more of a 'forced DCA' since i was paid on a semi-monthly basis. If I received an inheritance, I would most probably lump sum invest it to keep my AA in line. __________________ Life is GREAT!