Buying a broad index is a very good option for most investors.
Find an active manager to invest and you become passive.
Learn some lessons from index fund and apply that to your portfolio.
Joel in his book The Little Book That Beats The Market stated that buying good businesses when they are cheap is likely to generate
vastly better returns than any broad index. For more details you can check out www.magicformulainvesting.com. You can also buy the S&P 500 Index or Russell 2000 Index and do better than the vast majority of active money managers. A better approach is to buy these indexes in a dollar cost-averaged manner. Also you can use the magic formula tool by Greenblatt for $1 Million market cap.
Fifty Cent Dollars — Hiding In Plain Sight!
1. The Value Investors Club website by Joel Greenblatt
2. Subscribe to Value Line and study their bottom lists.
3. Look at the 52-week lows on the New York Stock Exchange (NYSE) daily.
4. Subscribe to Outstanding Investor Digest (OID; www.oid.com) and Value Investor Insight (www.valueinvestorinsight.com).
5. Subscribe to Portfolio Reports. – It lists the recent buying activity of portfolio managers in North America.
6. www.gurufocus.com somehow similar to Portfolio Reports
7. Subscribe to Super Investor Insight – tracks 13-F filing of Super Investors
8. Subscribe to Fortune, Forbes, the Wall Street Journal, Barron’s, and BusinessWeek
9. Attend the biannual Value Investing Congress (www.valueinvestingcongress.com).
If you are running a portfolio of 5 to 10 stocks and hold them for one to 3 years, you will be needing investment idea just every few months. Use the multiple combinations to get the best idea. That’s the lesson from index.
Watch The Dhandho Investor Chapter 15 full summary here 👇:
https://youtu.be/qRSuNeIT5qI
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