No. of Recommendations: 12
<<Let me introduce you to Jim :) Not denying that he has made many valuable contributions that we are all grateful for. But here's just a sampling of what he's claimed every year since 2011. ..
My favorite is his post in 2018 where he advised everyone NOT to invest in an index fund because that would be the same as having a note on our backs saying "kick me">>
Just a note:
Jim has also given numerous buy signals when he believed things were cheap. (For Berkshire and for the Index.)
I'm curious why you didn't include any of those posts?
I don't have the time or inclination to look them all up but here is one example...
"2022-10-01 Market bottoms..."
https://mungofitch.comLet's not forget a severe bear market can wipe 50% off the market at any moment. That's why stocks have higher expected returns, because they are riskier. (Unfortunately that risk rears its head now and again.)
If anything like this happens anytime soon Jim could end up looking pretty smart...we shall see!
The Dot-com bubble burst and the financial meltdown of 2007 to 2009
Began – February 2000
Ended – August 2009
Duration – Nine years and seven months
Percentage decline from top to bottom –54%
Inflationary bear market, Nifty Fifty
Began – December 1972
Ended – September 1974
Duration – 22 months
Percentage decline from top to bottom –51.86%
In 2014, in the fifth edition of Stocks for the Long Run, Jeremy Siegel wrote:
"In the first four editions of Stocks for the Long Run, I noted that the last 30-year period when the return on bonds beat stocks ended in 1861, at the onset of the Civil War.
That is no longer true. The 11.03% annual returns on long-term government bonds surpassed the 10.98% on stocks for the 30-year period from January 1, 1982, through the end of 2011."
Wow! A full 30 year period where the fixed income investor ended up with more money than the stock investor! And slept much easier as well.
Cheers!
Make sure your portfolio matches your need, willingness and ability to take risk...and as any Japanese investor from the 1990's will tell ya, diversification is your friend!
