I never bother with beta. I think beta is irrelevant.

I know this is against "modern" wisdom, but I would argue beta is irrelevant if you have a long-term time horizon. Sometimes, beta can be even misleading, for example, when home builders are beaten up, their beta also increase (e.g. TOL used to have a small beta, but it is up to 1.7 now). However, I would argue with their prices cut in 2/3, home builders presumably become better investments, not worse.

That said, most of my core holdings are boring ones with very low beta, for example, my largest holding, MO, has a beta of 0.6.

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• 我的理解 -BayFamily- ♂ (99 bytes) () 12/27/2007 postreply 22:13:32