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Jan 28, 2020
5:20:50pm
memento Playmaker
The irony of saying index investing is "dumb money"
when passive outperforms active. The best active funds constantly change because it's impossible to constantly beat the market.

But relating to data, since 1920, you could not outperform DCA even if you knew exactly when the market "bottomed." Sure, if you want to add caveats that you could short, buy puts/calls, futures, etc, the math changes slightly but that's not a realistic for 99.9999% of market participants (or even institutional investors, if I'm being honest for a variety of reasons).

Given that, comparing anyone to Warren and his strategy is foolish. Warren, due his stature (and balance sheet) gets access to deals that no other major institutional investor (let alone individual investor) would ever get (an example, his BAC Pfd deal).


memento
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memento
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