Maybe I agree with you about maybe not agreeing with me. I think you (and AlohaJoe) have a point.JoMoney wrote: ↑Tue May 22, 2018 9:37 pmI'm not sure if I agree with that or not
Something about that definition rubs a little bit funny.
The idea of "passive investing" has been around long before one could actually replicate the "market portfolio", and seems to me the passivity was in not making frequent decisionsBut at the same time, the expectation for a passive investor was to garner average returns and not taking unusual risks, and it's hard to argue against the "market portfolio" being the embodiment of that.Benjamin Graham in The Intelligent Investor wrote:... The defensive (or passive) investor will place his chief emphasis on the avoidance of serious mistakes or losses. His second aim will be freedom from effort, annoyance, and the need for making frequent decisions. ..
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It started out with 30 stocks and after 83 years of doing nothing, the number has dwindled to 20. More worrying, the top stock is 25% of the fund. So it's underdiversified for sure, but again - it started with just 30 stocks!nisiprius wrote: ↑Tue May 22, 2018 8:30 pmYou mean like the Voya Corporate Leaders Trust, LEXCX, the only fund I know of that does that... which has an expense ratio of 0.59%? "In theory, there is no difference between theory and practice, but in practice, there is."dumbmoney wrote: ↑Fri May 18, 2018 9:35 pm
(And, incidentally, LEXCX has experienced style drift from large value to large blend during a "human lifetime," which is not very important, but not totally "meaningless.")
Nah, large cap stocks get added sometimes.
I am pleased to report that the invisible forces of destruction have been unmasked, marking a turning point chapter when the fraudulent and speculative winds are cast into the inferno of extinction.