A Quote by James O'Shaughnessy
If you're indexing to the S&P 500, you're buying the most expensive names in the market.
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Ecclesiastes names thee Almighty, the Maccabees name thee Creator, the Epistle to the Ephesians names thee Liberty, Baruch names thee Immensity, the Psalms name thee Wisdom and Truth, John names thee Light, the Book of Kings names thee Lord, Exodus names thee Providence, Leviticus Sanctity, Esdras Justice, creation names thee God, man names thee Father; but Solomon names thee Compassion, which is the most beautiful of all thy names.
What indexing does is neutralize a large part of the stock market. There's no trading in those stocks, or almost none.
Nobody wants to be passive; indexing is not passive - much more goes into indexing than watching a stock become the next buggy whip.
When you look at "Obamacare," the Congressional Budget Office has said it will cost $2,500 a year more than traditional insurance. So it's adding to cost. And as a matter of fact, when the president ran for office, he said that by this year he would have brought down the cost of insurance for each family by $2,500 a family. Instead, it's gone up by that amount. So it's expensive. Expensive things hurt families. So that's one reason I don't want it.
Indexing is a successful approach to investing not because it's simple, but because it has performed so much better than the average active manager (the opposite of indexing), and the simplicity is just an added bonus.
The Fed's buying is far more important to the market price of U.S. debt than any other economic variable. If the Fed stops buying, it doesn't matter whether unemployment goes up or down. It doesn't matter whether inflation is higher or lower. Its influence on the market is dominant.
There are no bad days in the market. When the market is down, you've got bargains, and it's lovely to think of what you are buying at low prices. When the market is up, the bargains have gone, but you're rich.
The '80s market was only a Japanese market. It was the Japanese outbidding each other for the most expensive works of art. When the Japanese economy went down the tubes, there was no one left to pay the prices that have been recorded for all of those works.
The investor is neither smart not richer when he buys in an advancing market and the market continues to rise. That is true even when he cashes in a goodly profit, unless either (a) he is definitely through with buying stocks an unlikely story or (b) he is determined to reinvest only at considerably lower levels. In a continuous program no market profit is fully realized until the later reinvestment has actually taken place, and the true measure of the trading profit is the difference between the previous selling level and the new buying level.
500 dollars? Fully subsidized? With a plan? I said that is the most expensive phone in the world. And it doesn't appeal to business customers because it doesn't have a keyboard. Which makes it not a very good email machine.
Gold is not overvalued at $500, and gold will not be overvalued at $1,500 or $2,000. The real money is buying gold and putting it away.
It's too expensive, that's the thing nobody wants to talk about. It is too expensive to make movies. That's not true, it is too expensive to market movies. Making movies is not.
We have a market-driven society so obsessed with buying and selling and obsessed with power and pleasure and property, it doesn't leave a whole lot of time for non-market values and non-market activity so that love and trust and justice, concern for the poor, that's being pushed to the margins, and you can see it.
If you have a choice between buying something in Vietnam or China or buying something made in Virginia, why not buy it from people in Virginia? A lot of times, it's not much more expensive or may even be less.
Studies have found that preparing your own food is usually healthier and less expensive than buying fast food. But most people just don't have the time.
Many people think that being a graphic designer means going to an expensive art school and buying expensive software that will cost you thousands of dollars. This is so far from the truth. There are hundreds of online education centers that offer top-notch graphic design training.
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