| Im 20, where should I put my money? |
|
|
|
|
|
Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
|
Even if you diversify (which I would recommend for most, in general), you still should pick the top 1/3 quality of funds.
"Expect me when you see me."
|
Mon Oct 10, 2005 5:49 pm |
|
|
auggyf
Full Member
Cash: $ 19.90
Posts: 97
Joined: 24 Sep 2005
Location: San Francisco
|
|
 |
|
quote:
Originally posted by Rolo
Even if you diversify (which I would recommend for most, in general), you still should pick the top 1/3 quality of funds.
Not to keep on hammering thing, but ...
It may be true that 1/3 of the funds do better than the index for a year. But most of the time it seems to be due to random chance -- the probability that a fund will do better than the market over longer and longer time frames diminishes, because on average these funds will not beat the market.
Also remember that when you are looking at historical performance of mutual funds, there is a large selection bias. There are many many mutual funds that shut down or merged with another one due to poor performance. Similarly, a lot of people look at the S&P 500 index as the symbol of an index fund when it focuses on 500 of the large, U.S. public companies.
In the end, there is space in the market for both kinds of invesments {active and passive}. I would go as far as saying that passive investments rely on a certain amount of active ones to exist to make sure prices are correct. Anyway, in this situation, for someone who is very young and knows little about the market, and even if s/he spelled capable correctly, an index is probably the way to go. Now, when s/he learns more about investing and the stock market in general, then you can start thinking about the possibility of doing some investments that require more knowledge or experience about the stock market. For some people, more knowledge and experience means more passive investing, but for others it means more active investing.
|
|
Thu Nov 17, 2005 3:25 pm |
|
|
Healthman
New Member
Cash: $ 1.50
Posts: 6
Joined: 28 Jan 2006
Location: Interenational
|
I think another good option would be to invest a small amount of it into a Mult-Billion dollar Debt-Free company for a Franchise that offers you lots of flexability with no overhead. A company that has one of the best track records and is currently doing many great things at once.
This is just another option that I had to share with you, as it is your decission to make.
|
|
Sat Jan 28, 2006 6:14 am |
|
|
Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
|
quote:
Originally posted by Healthman
This is just another option that I had to share with you, as it is your decission to make.
I'd like to share something with you...I don't like people being 'cute', thinking they are smarter than everyone else. Here's a decision for you to make: stop spamming the board with your plugs and contribute something, or keep it up and get all of your posts deleted.
Just thought I'd share your options! 
Now back to the original topic...
"Expect me when you see me."
|
|
Sat Jan 28, 2006 2:00 pm |
|
|
|
