One week until taxes due
Quote: billryanQuote: Ace2Who 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&PQuote: billryanYour 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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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.
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.
Quote: billryanYour 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."
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.
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 listedQuote: billryanQuote: Ace2Who 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&PQuote: billryanYour 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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Why?
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https://www.berkshirehathaway.com/letters/2021ltr.pdf
Quote: Ace2Ask 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
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Quote: Ace2What'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
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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).
