Troll:
Your article doesn’t contain anything I like or don’t like. It has no relation to anything I said. It’s mostly about taxes which is not my field. You directed that at me claiming that I would ignore it. The implication is that there is something in there relevant to something I said. So, for the second time, what is it?
Next you claim that people will do worse picking individual stocks than they will in index funds. If you wish to make that claim, then you need to prove it. Please do do.
Next you say the majority of managers don’t outperform their indexes. This is true. But, some do and some do consistently, and they are not that hard to find. ABALX has been doing so fairly consistently since before the great depression, as one example. More importantly, a lot of funds are not trying to beat their Indexes. Some seek to have a lower beta or a higher upside/downside capture ratio, and the, of course, some just suck.
Next, you claim I am somehow being dishonest by choosing a market peak as my starting point. I’m not sure why that would matter, I simply chose a ten year period as a reasonably standard point of comparison, but, for the record, here is the data for a list of the 27 stocks in the SP that have raised their dividend 25 years in a row:
1 year - 19.35 for the strategy versus 15.06 for SP
3 years - 5.67 avg annual return versus negative 2.85 for SP
5 years - 6.27 versus 2.29
15 years - 9.78 versus 6.76
20 years - 11.46 versus 9.4
Again, these are as of December 31, 2010, assumes reinvestment of all dividends. This is an audited #. I can’t post my source for regulatory reasons. However, I could send my audited #s to a third source for verification if I had to.
So, those are real, and I think that basically proves that this accusation of yours is a specious lie.
Next, yes I do admit that popularity has the largest effect on stock prices. A moment’s reflection will show why this is not an argument in your favor, and, in fact, I explained why in my last post. You appear to be slow.
Next you.aim that I might be a lying fuck but even if I’m not it doesn’t prove I know anything about anything else. True, but I don’t think has challenged me on anything factual, or anything g to do with the mechanics of markets that Ive described.
Finally you say my being a lying fuck is consistent with who I have been on these boards.
Maybe.
But I know you for a fact to be a troll and to be the worst kind of coward. A year or two ago when you were trolling after me, I threatened to go to a dope feet and meet you. I did this under the theory that there is a certain kind of asshole on the Internet, a nebbish or coward who gets his rocks by being hostile and antagonistic with a target of their choice as a way to compensate for their inadequacies. You know, people that act tough on the Internet because they are so fearfull in real life. Well, when I threatened to meet you, you freaked out, confirming my suspicion. I didnt bother to meet you and you haven’t bothered me since. Now you’ve come a trolling again.
You kind of disgust me.
