Quote:
Originally Posted by Phanuthier
To go out and buy a who diversity of stocks/MF's where the previous returns were like 10% or whatever... and guess you could get that, before inflation, well I'm a little skeptical of that. Then again, 1987 saw some of these same fears as well. So yeah, like you said, I'm not convinced what worked in for the past few decades will work for the next few... thus I"m not really convinced TWB is something that works, at least not for me.
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Problem is, what else are you going to do with your money on hand to invest? One of the reasons why the Wealthy Barber and other 'buy and hold' strategies are so popular is that over time (meaning over 30-40 years) they outperform pretty much all actively managed positions. All it takes is one-event driven miscalculation to wipe-out everthing you gained from active management.