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TigerWu
TigerWu
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April 13th, 2022 at 12:03:39 PM permalink
Quote: billryan

Quote: Ace2

Quote: billryan

Your portfolio shouldn't be trying to beat the S&P. Depending on your age, part of it should be in bonds and other instruments. The closer you get to retiring, the more you want to reduce your exposure to stocks. Having 100% stocks or funds is cool when you are thirty, but foolish when you are sixty.
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Who recommended 100% stocks or funds (at any age)? However, the portion of your portfolio allocated to stocks should probably be measured against (and invested in) a broad index like the S&P
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Why?
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Because that's the most generic, broadest, and "safest" equity benchmark for most people (in the U.S.). You could also do a Total Market fund, but S&P is basic enough for most people.
DRich
DRich
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Mukke
April 13th, 2022 at 12:15:16 PM permalink
Quote: TigerWu


Who recommended 100% stocks or funds (at any age)? However, the portion of your portfolio allocated to stocks should probably be measured against (and invested in) a broad index like the S&P



Or, just take the typical American approach and invest it all in Powerball tickets.
Order from chaos
MrV
MrV
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April 13th, 2022 at 12:25:48 PM permalink
Quote: billryan

Your portfolio shouldn't be trying to beat the S&P. Depending on your age, part of it should be in bonds and other instruments. The closer you get to retiring, the more you want to reduce your exposure to stocks. Having 100% stocks or funds is cool when you are thirty, but foolish when you are sixty



Not sure I agree.

I have money in a variey of stock-based mutual funds, but also an annuity: no bonds to hedge market fluctuations.

Me, I like taking risks: hell, it's gamblin'.

Fortunately I also have sufficient cash reserves, so if the market tanks completely (yeah, right) I won't have to eat Alpo and ramen.

It used to be "Live fast, die young, and leave a good looking corpse;" now I prefer "Live long, die peacefully, and leave a good looking corpus."
"What, me worry?"
DRich
DRich
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April 13th, 2022 at 12:49:06 PM permalink
Quote: MrV



It used to be "Live fast, die young, and leave a good looking corpse;" now I prefer "Live long, die peacefully, and leave a good looking corpus."
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My problem is that I never counted on living this long. I probably would have saved a few more pennies if I knew.
Order from chaos
Ace2
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April 13th, 2022 at 1:09:35 PM permalink
Quote: billryan

Quote: Ace2

Quote: billryan

Your portfolio shouldn't be trying to beat the S&P. Depending on your age, part of it should be in bonds and other instruments. The closer you get to retiring, the more you want to reduce your exposure to stocks. Having 100% stocks or funds is cool when you are thirty, but foolish when you are sixty.
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Who recommended 100% stocks or funds (at any age)? However, the portion of your portfolio allocated to stocks should probably be measured against (and invested in) a broad index like the S&P
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Why?
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Ask Warren Buffett. On page one of the Berkshire's annual letter, the first words are: "Berkshire’s Performance vs. the S&P 500". Then the comparative annual returns since 1965 are listed

https://www.berkshirehathaway.com/letters/2021ltr.pdf
It’s all about making that GTA
AlanMendelson
AlanMendelson
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April 13th, 2022 at 1:24:16 PM permalink
Berkshire Hathaway is it's own mutual fund.
lilredrooster
lilredrooster
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April 13th, 2022 at 1:40:19 PM permalink
Quote: Ace2

Ask Warren Buffett. On page one of the Berkshire's annual letter, the first words are: "Berkshire’s Performance vs. the S&P 500". Then the comparative annual returns since 1965 are listed

https://www.berkshirehathaway.com/letters/2021ltr.pdf
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again, misleading


Berkshire has been beaten up by the S&P since 2015

2015 - Berkshire - negative 12.5%_____ S&P - positive 1.4%

2019 Berkshire____ 11.9%________S&P__________31.5%

2020_________Berkshire 2.4%____________S&P__________18.4%



Buffett has beaten the S&P during that period a few years


roughly - since 2015_____________Berkshire_____________100%__________________S&P____________118%



Buffett himself during this period has said on occasion that he recommends the S&P index fund to some investors


.
"𝘣𝘦𝘭𝘪𝘦𝘷𝘦 𝘩𝘢𝘭𝘧 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘢𝘯𝘥 𝘯𝘰𝘯𝘦 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘩𝘦𝘢𝘳"______Edgar Allan Poe
Ace2
Ace2
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April 13th, 2022 at 1:45:13 PM permalink
What's misleading?
It’s all about making that GTA
lilredrooster
lilredrooster
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April 13th, 2022 at 1:47:38 PM permalink
Quote: Ace2

What's misleading?
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it seemed to me that you were implying that Berkshire and Buffett can be counted on to beat the S&P

but they have not done that since 2015

if you were not implying that, then I am mistaken, and I apologize


.
"𝘣𝘦𝘭𝘪𝘦𝘷𝘦 𝘩𝘢𝘭𝘧 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘢𝘯𝘥 𝘯𝘰𝘯𝘦 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘩𝘦𝘢𝘳"______Edgar Allan Poe
TigerWu
TigerWu
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April 13th, 2022 at 2:08:01 PM permalink
Quote: lilredrooster




Buffett himself during this period has said on occasion that he recommends the S&P index fund to some investors


.
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That is precisely what Ace2 was insinuating (to billryan specifically).

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