Comments on: Rule for Building Wealth: Don’t Try to Beat the Market http://www.consumerismcommentary.com/2006/12/14/rule-for-building-wealth-dont-try-to-beat-the-market/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Matt http://www.consumerismcommentary.com/2006/12/14/rule-for-building-wealth-dont-try-to-beat-the-market/#comment-73747 Matt Thu, 14 Dec 2006 14:47:45 +0000 http://www.consumerismcommentary.com/2006/12/14/rule-for-building-wealth-dont-try-to-beat-the-market/#comment-73747 I like the approach, trying to beat the market means you need to have a lot of good information at your disposal. My approach is to have some diversified investments while still leaving a little bit for me to invest in as I saw fit: for whims, companies that caught my eye and I think they'll do good and simply for the risky investments that can't guarentee anything. As long as you ensure that the majority of your investments are tied up in funds or bonds that have consistently had good returns then any money you 'play' with is gravy if you get anything from it. I like the approach, trying to beat the market means you need to have a lot of good information at your disposal. My approach is to have some diversified investments while still leaving a little bit for me to invest in as I saw fit: for whims, companies that caught my eye and I think they’ll do good and simply for the risky investments that can’t guarentee anything.

As long as you ensure that the majority of your investments are tied up in funds or bonds that have consistently had good returns then any money you ‘play’ with is gravy if you get anything from it.

]]> By: TMT http://www.consumerismcommentary.com/2006/12/14/rule-for-building-wealth-dont-try-to-beat-the-market/#comment-73744 TMT Thu, 14 Dec 2006 14:20:57 +0000 http://www.consumerismcommentary.com/2006/12/14/rule-for-building-wealth-dont-try-to-beat-the-market/#comment-73744 I agree this is best approach to take. Further, there is a big difference between "investment" returns and "investor" returns. And as a result, many investors have a hard time leaving their investments alone to work for them over time. They keep getting sucked into the buy high & sell low cycle driven primarily by fear & greed. Check this out: http://www.qaib.com/showresource.aspx?URI=actnowfree&Type=FreeLook I would attribute this to behavioral issues more than anything else. I agree this is best approach to take.

Further, there is a big difference between “investment” returns and “investor” returns. And as a result, many investors have a hard time leaving their investments alone to work for them over time. They keep getting sucked into the buy high & sell low cycle driven primarily by fear & greed.

Check this out: http://www.qaib.com/showresource.aspx?URI=actnowfree&Type=FreeLook

I would attribute this to behavioral issues more than anything else.

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