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So for confirmation, correct me if I'm WRONG okay? You are saying to invest in an Index Fund for the long haul, just BECAUSE it's a fund full of blue chip companies? That's it? Just because the brand name blue chip companies are in the fund, that's the sole reason for investing in it?
MathJak the issue here though, is that you are investing in the Paper Value of their Stock Certificate. Their Stock Certificate Paper Value doesn't always correlate with the actual performance (good or bad) of the companies in particular. Wouldn't you agree?
So just because those companies are likely to be around 20 years from now, does that mean their Paper Value would have increased over that time period? The companies could be solid, but the Paper Assets could be depreciating based on things that are beyond/outside the scope of the companies in particular.
Do you get my point here?
I would be willing to bet you a large sum of money that the majority of the companies in the S&P 500 will have higher market caps 20 years from now than they do today.
Your problem is you have an illusion of control issue. You think that by directly running your business it is safer than having others run your business. This is why people diversify their investments.
You are essentially arguing that it is better to own all of 1 micro-cap stock than a little piece of the largest 500 companies in the world. If you can't see that as significantly more risky I'm not sure how anyone can help you here.
Contracts can terminate, current portfolios can dissolve, become insolvent, not perform up to expectations so you assume/guess that they will. Anything 3-5 years down the road is a guess
Are we going to stay on Stocks and can you guys finish answering my questions on Stocks, please? A contract could terminate, but it depends on ALL of the variables in said contract that point to the probability of termination. Same with fixed income portfolios, you have to look at ALL of the variables to determine the probability of it dissolving.
This is what I'm trying to get out of you guys in relation to Stocks, and that's ALL of the variables. You guys are speaking in broad generalities and I'm trying to get down to specifics.
why would you even assume someone who is a passive investor wants to even own a business and take on that risk and work load.
comparing passive investigating to owning an active business is credulous . they are apples to cars .
the wise person could do both not either or .
SO you are just going to IGNORE my questions?
Quote:
Originally Posted by mizzourah2006
I would be willing to bet you a large sum of money that the majority of the companies in the S&P 500 will have higher market caps 20 years from now than they do today.
Okay great, now can you tell me what that "bet" is based on? What is going to happen in the next 20 years that is going to increase their Paper Value? Can you elaborate PLEASE?
the answer is the same things you hope grow your business grows every company in the world. with the addition that these large companies can increase shareholder value through stock buy backs and acquisitions of majority market share .
the answer is the same things you hope grow your business .
See MathJak, this is why I say you guys are disingenuous. I'm sitting here, trying to have a conversation with you, asking you reasonable questions, and you refuse to answer a single question.
See MathJak, this is why I say you guys are disingenuous. I'm sitting here, trying to have a conversation with you, asking you reasonable questions, and you refuse to answer a single question.
Your argument had to change because what you orginally presented ended up not being true. It's like a dog chasing his tail just trying to prove himself right
I never would've guessed that a thread about 401K performance would get so adversarial. Why all the ANGER?
I'm not angry lol, I'm just asking reasonable questions to guys who say they have been investing in Stocks for decades. Yet, for some reason, they don't want to answer these questions because quite honestly, they CAN'T answer them.
Stocks are gambling, you sit down and pull the slot and hope you win. In this case, you sit down, spread money out over blue chip companies in a Vanguard Index Fund, and hope in 20 years you make an average return per year that beats inflation, taxes and preserves your principal.
End of discussion.
Quote:
Originally Posted by Lowexpectations
Your argument had to change because what you orginally presented ended up not being true. It's like a dog chasing his tail just trying to prove himself right
No argument of mine has changed, I said that MathJak used diversification and buy/hold forever as a "shoe-in" for market returns. He confirmed that was his stance. Not sure what thread you are reading. End of discussion.
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