The estimates are that the system loses money 1 year our of 4
IE, about as frequently as the market as a whole does...
but makes it up in the longer term
Right - do you see why getting returns above 30% on an ongoing basis is a challenge? Remember, if I have a dollar, and I buy something with it that has variable value, and that value falls by 10%, I need for it to then gain 11% to recover it's original value. If it falls by 20%, I need for it to go back up by 25% just to get back where I started.
Again, my complaint is not with owning stocks, nor is it with Value Investing as a basic strategy. My complaint is that 'I can put $30k in now and get a megabuck back really soon' is broken.
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
timeasmymeasure
no subject
Date: 2007-01-31 06:50 pm (UTC)IE, about as frequently as the market as a whole does...
but makes it up in the longer term
Right - do you see why getting returns above 30% on an ongoing basis is a challenge?
Remember, if I have a dollar, and I buy something with it that has variable value, and that value falls by 10%, I need for it to then gain 11% to recover it's original value. If it falls by 20%, I need for it to go back up by 25% just to get back where I started.
Again, my complaint is not with owning stocks, nor is it with Value Investing as a basic strategy. My complaint is that 'I can put $30k in now and get a megabuck back really soon' is broken.