In his last years Graham told investors to buy stock market index funds with low costs and just manage the stocks/bonds allocation with time.
Today there is some closed-end index-funds with costs below 1% per year.
The cheaper fund I found is PIBB11, with costs of only 0,059% per year and follows the IBrX-50 index.
Would you follow Graham's toughts or would you continue to pursue bigger returns in stock picking?
Efeitos no Brasil do cenário financeiro nos EUA
3 weeks ago
1 comments:
No, definitely not.
Because the main advantage of this approach, which is to stay quiet, it's well fulfilled by the Investment Value.
And I don't want to became partner of OGX, for example. Some companies are too easy to exclude from a possible investment, and, the more they go up, more they are weighted in the index.
So, if I would need to take a more passive approach, because of lacking time, I would make a portfolio with the most low P/E, or P/BV, or higher yield, that has already been proved to yield superior return.
That's was also recommended by Graham:
"What general approach to portfolio formation do you advocate? Essentially, a highly simplified one that applies a single criteria or perhaps two criteria to the price to assure that full value is present and that relies for its results on the performance of the portfolio as a whole--i.e., on the group results--rather than on the expectations for individual issues."
Post a Comment
We encourage your feedback and we will take your comments into serious consideration. However, you must be warned that any comment that does not follow the blog philosophy (Value Investing and Behavioural Finance) will be promptly removed.