Comments on: A few interesting links http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Sat, 20 Mar 2010 16:46:25 -0700 http://wordpress.org/?v=abc hourly 1 By: Ted http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1237 Ted Sat, 11 Feb 2006 00:34:27 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1237 :) In that case, do you think it's ok to use past index fund results to predict the future? I.e., 11% historical growth and beats 75% mutual funds? :) In that case, do you think it’s ok to use past index fund results to predict the future? I.e., 11% historical growth and beats 75% mutual funds?

]]> By: Ramit Sethi http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1236 Ramit Sethi Thu, 09 Feb 2006 17:53:33 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1236 I have no idea! I have no idea!

]]> By: Ted http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1235 Ted Thu, 09 Feb 2006 02:48:42 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1235 I'd like to hear your opinion on infinite future growth Ramit. Do you think growth will slow as the world gets fuller and more natural capital is depleted? I’d like to hear your opinion on infinite future growth Ramit. Do you think growth will slow as the world gets fuller and more natural capital is depleted?

]]> By: Ramit Sethi http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1234 Ramit Sethi Tue, 07 Feb 2006 23:48:48 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1234 Johnny: Agreed. The chart is just an example that demonstrates my point--I'm not saying "go invest in something unsexy today!!!" (nor would I ever). Johnny: Agreed. The chart is just an example that demonstrates my point–I’m not saying “go invest in something unsexy today!!!” (nor would I ever).

]]> By: Johnny Debacle http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1233 Johnny Debacle Tue, 07 Feb 2006 21:13:21 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1233 I love that Craig Newmark too, but there is a huge mistake in gleaning too much other than a nice piece of trivia from a chart like that. If you made similar investments in other large "non-sexy" companies like Kodak or GM, 26 years later (or whatever period you want to pick) you'd have severely underperformed the market. You can pick a large amoung of quiet unsexy investments that you can fit to whatever trend you'd like to sell to someone. And there is a survivorship bias already cooked in from that sample, since any company you choose from the end of a long term sample of stocks is one that hasn't gone to zero and is still existant. I think that "buy and hold" and not looking at your portfolio too much is great advice for the most part, but you sell it in such a way that is misleading. Even assuming that equity markets will go up long term is a bit misleading, but I won't get into any probabilistic debates here, mainly because my profession is somewhat dependent on that historically guided assumption. I love that Craig Newmark too, but there is a huge mistake in gleaning too much other than a nice piece of trivia from a chart like that. If you made similar investments in other large “non-sexy” companies like Kodak or GM, 26 years later (or whatever period you want to pick) you’d have severely underperformed the market. You can pick a large amoung of quiet unsexy investments that you can fit to whatever trend you’d like to sell to someone. And there is a survivorship bias already cooked in from that sample, since any company you choose from the end of a long term sample of stocks is one that hasn’t gone to zero and is still existant.

I think that “buy and hold” and not looking at your portfolio too much is great advice for the most part, but you sell it in such a way that is misleading.

Even assuming that equity markets will go up long term is a bit misleading, but I won’t get into any probabilistic debates here, mainly because my profession is somewhat dependent on that historically guided assumption.

]]> By: Gualberto Daiz http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1232 Gualberto Daiz Tue, 07 Feb 2006 20:55:18 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1232 That's a great quote you got in there. And I have thought the same thing myself with the "sexiness" of a stock. If you think about it, all Wall Street is a bunch of hustlers. Back in the 70's everything was about being the conglomerate that buys everything to increase earnings and shareholder value. Nowadays it's all about breaking up the company to increase shareholder value. Sounds to me like the only people who get value out of this are the brokers and bankers arranging the deal. That’s a great quote you got in there. And I have thought the same thing myself with the “sexiness” of a stock. If you think about it, all Wall Street is a bunch of hustlers.

Back in the 70’s everything was about being the conglomerate that buys everything to increase earnings and shareholder value. Nowadays it’s all about breaking up the company to increase shareholder value.

Sounds to me like the only people who get value out of this are the brokers and bankers arranging the deal.

]]> By: Andrew http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1231 Andrew Tue, 07 Feb 2006 19:00:48 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1231 I know im off topic..but how do you create subaccounts in ING? I know im off topic..but how do you create subaccounts in ING?

]]> By: Ramit Sethi http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1230 Ramit Sethi Tue, 07 Feb 2006 16:44:22 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1230 I've written a little about this (because the problem usually isn't selling, it's getting people to buy in the first place). Check out <a href="http://www.iwillteachyoutoberich.com/archives/2005/05/heres_a_little.html" rel="nofollow">When do you sell a stock?</a> Btw, with a long-term outlook (5+ years; better: 10+), in general I don't care what happens from one week to the next. I’ve written a little about this (because the problem usually isn’t selling, it’s getting people to buy in the first place). Check out When do you sell a stock?

Btw, with a long-term outlook (5+ years; better: 10+), in general I don’t care what happens from one week to the next.

]]> By: Jared Iverson http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links/comment-page-1/#comment-1229 Jared Iverson Tue, 07 Feb 2006 16:37:38 +0000 http://www.iwillteachyoutoberich.com/blog/a-few-interesting-links#comment-1229 I agree that holding good stocks over time brings the best results, but when do you feel like a "good stock" isn't worth holding anymore? I bought Google stock in 2004 and more during its big decline last week with the intention of holding it long term. Given your buy and hold strategy, are you worried at all about Google's further decline this week? Or is this, in your opinion, an expected short term dip in its upward climb? I agree that holding good stocks over time brings the best results, but when do you feel like a “good stock” isn’t worth holding anymore? I bought Google stock in 2004 and more during its big decline last week with the intention of holding it long term. Given your buy and hold strategy, are you worried at all about Google’s further decline this week? Or is this, in your opinion, an expected short term dip in its upward climb?

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