Money and Finance
A new report from Vanguard Group casts some doubt on the meme that retail investors have been fleeing stocks like rats from a sinking ship.
- Have Investors Finally Cracked The Stock-picking Code? - By Jason Zweig
Jason Zweig's latest. This is kind of related to some of the points I made in THIS letter. Believe it or not, there could be a new holy grail for investors. "Great ideas come along maybe once every 20 years or so," David Booth, chairman of Dimensional...
- The Dividend-fund Dilemma - By Jason Zweig
Sooner or later, the markets always punish investors who do the right thing for the wrong reason. Some investors in dividend-oriented stock funds might end up learning that lesson the hard way. So far this year, $9 billion has gone into mutual funds and...
- Chou Funds: 2011 Annual Report
Found via The Corner of Berkshire & Fairfax. In equities, we believe the financial, retail and pharmaceutical sectors are undervalued. Thus, as the prices of financial and retail sector equities fell during 2011, we added to our positions. We favour...
- High Yield Reads - 5/17/14
Summary of recents posts and pieces of interest, sometimes enduring, to investors: Consuelo Mack interviews Chuck Akre on the importance of compounding. He uses Markel as a case study. More compounding machines: Base Hit Investor mines the intersection...
- June Progress
June was a busy month. Kids were out of school for summer. I discontinued working on one of my projects, so it decreased my cash inflow. I wrote why I did it here. I did not buy as many stocks as I planned. I added a new stock to my portfolio - PG....
Money and Finance
Are Individual Investors Fleeing Stocks? Nope – By Jason Zweig
A new report from Vanguard Group casts some doubt on the meme that retail investors have been fleeing stocks like rats from a sinking ship.
The report, “How America Saves,” is the latest installment in Vanguard’s annual survey of the more than 3 million Americans who participate in retirement plans administered by the giant fund company.
To be sure, this year’s study (encompassing data from 2011) shows that the proportion of assets in retirement plans invested in stocks fell three percentage points from last year and is down eight points from its peak in 2007. But that still leaves 65% in stocks – versus 17% in cash and 10% each in bonds and balanced funds.
While the financial commentariat would have you believe that retail investors have been yanking their last farthings out of the stock market, the folks in Vanguard’s huge sample of retirement savers still have two-thirds of their money riding on stocks.
The story gets more interesting when you look beyond people’s balances to see what they are doing with the contributions from their current paychecks. Fully 71% of that money is going into stocks, reports Vanguard – up one percentage point from 2010 and three points higher than in 2009.
If this is “the death of equities,” the funeral seems extraordinarily well-attended.
- Have Investors Finally Cracked The Stock-picking Code? - By Jason Zweig
Jason Zweig's latest. This is kind of related to some of the points I made in THIS letter. Believe it or not, there could be a new holy grail for investors. "Great ideas come along maybe once every 20 years or so," David Booth, chairman of Dimensional...
- The Dividend-fund Dilemma - By Jason Zweig
Sooner or later, the markets always punish investors who do the right thing for the wrong reason. Some investors in dividend-oriented stock funds might end up learning that lesson the hard way. So far this year, $9 billion has gone into mutual funds and...
- Chou Funds: 2011 Annual Report
Found via The Corner of Berkshire & Fairfax. In equities, we believe the financial, retail and pharmaceutical sectors are undervalued. Thus, as the prices of financial and retail sector equities fell during 2011, we added to our positions. We favour...
- High Yield Reads - 5/17/14
Summary of recents posts and pieces of interest, sometimes enduring, to investors: Consuelo Mack interviews Chuck Akre on the importance of compounding. He uses Markel as a case study. More compounding machines: Base Hit Investor mines the intersection...
- June Progress
June was a busy month. Kids were out of school for summer. I discontinued working on one of my projects, so it decreased my cash inflow. I wrote why I did it here. I did not buy as many stocks as I planned. I added a new stock to my portfolio - PG....