No. of Recommendations: 11
Interesting read.
A few things in there I think are very poor advice, but even reading those is useful for me to really clarify once again my reasoning for the disagreement.
For me probably the most interesting statement in there is true, but would be so much better if it went one sentence further. He notes:
"His famous assertion that “a blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts” has been validated repeatedly by research.
The bit I would add:
This is certainly true, but it's also true that over the long run the monkey's portfolio will also almost always outperform a low fee market cap index fund that he is using this statement to advocate.*
Jim
* Assuming, as is typical, that the monkey allocates funds to his picks equally, reconstitutes its portfolio from time to time (say every year or two or three), and picks are made from some list like a broad index.
Try it.
