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tw · 03-21-2008, 02:25 AM

In that same discussion were a cross section of stocks:
Microsoft (MSFT)
Intel (INTC)
Nokia (NOK)
Amazon (AMZN)
Adobe (ADBE)
Qualcomm (QCOM)
Cisco (CSCO)
Juniper Networks (JNPR)
Warren Buffet's Berkshire Hathaway (BRKA)

As Peter Lynch noted, most will mimic the market, one may be a dog, and one will be so good as to make the entire portfolio profitable. Observe with care. For example Intel (second down) looks like a large loss. But it is only 20% down. Next stock, Nokia, looks like a small gain but is really 50% up.

This 'basket of stocks' duplicates what Peter Lynch stated and demonstrates how a simple cross section of stock typically outperforms professionally managed mutual funds. Notice the performance of Nokia, Amazon, Adobe, and Qualcomm (until it started losing lawsuites). Even the legendary Berkshire Hathaway is only an average performer in this portfolio posted four years ago but better than the non-indexed mutual funds.

Meanwhile, why would anyone even waste one dollar on a lottery ticket? Why would anyone invest in a losers proposition?

Blue is each stock as posted four years ago; red is the DJIA:

03-21-2008, 02:25 AM	#39
tw Read? I only know how to write. Join Date: Jan 2001 Posts: 11,933	In that same discussion were a cross section of stocks: Microsoft (MSFT) Intel (INTC) Nokia (NOK) Amazon (AMZN) Adobe (ADBE) Qualcomm (QCOM) Cisco (CSCO) Juniper Networks (JNPR) Warren Buffet's Berkshire Hathaway (BRKA) As Peter Lynch noted, most will mimic the market, one may be a dog, and one will be so good as to make the entire portfolio profitable. Observe with care. For example Intel (second down) looks like a large loss. But it is only 20% down. Next stock, Nokia, looks like a small gain but is really 50% up. This 'basket of stocks' duplicates what Peter Lynch stated and demonstrates how a simple cross section of stock typically outperforms professionally managed mutual funds. Notice the performance of Nokia, Amazon, Adobe, and Qualcomm (until it started losing lawsuites). Even the legendary Berkshire Hathaway is only an average performer in this portfolio posted four years ago but better than the non-indexed mutual funds. Meanwhile, why would anyone even waste one dollar on a lottery ticket? Why would anyone invest in a losers proposition? Blue is each stock as posted four years ago; red is the DJIA: Attached Images Last edited by tw; 03-21-2008 at 02:33 AM.