my views on sp500

SP500 has been an universal accepted default investment tool for long term. Every company's 401K will have some kind of SP500 index fund available. Buffet said you would pay a high price for a consensus. Naturally, for such a popular investment tool like SP500, you would pay a premium for it. Just watch the price jump when a company is announced to be added to SP500, so many index funds have to buy in blindly in a short time. A built in premium is very obvious which I do not like.

Second, SP500 are made up of mega companys like citigroup, I prefer small companys before they are added to SP500 or bought out by SP500 companys. Small beats giant when you are talking about long term, 30 years ago, walmart, HD, google, microsoft, intel ... they are not in sp500.


Third, sp500 is a good investment tool for lazy people, but many people on this forum interested in investment, SP500 is a waste of talent. If you invest in SP500, why bother study investing.

所有跟帖： 

• 对于没有投资talent的人来说sp500还是很好的，对于自以为有talent -屋漏痕- ♂ (88 bytes) () 06/20/2007 postreply 04:22:09

• 哈哈哈！多么精辟啊“对于自以为有talent而实际没有的” -跨国- ♂ (0 bytes) () 06/20/2007 postreply 04:26:30

• 回复：对于没有投资talent的人来说sp500还是很好的，对于自以为有talent -yppsilence- ♀ (367 bytes) () 06/20/2007 postreply 06:45:18

• 有道理。所以每次都不要把全部财产押上，不管把握多大 -跨国- ♂ (0 bytes) () 06/20/2007 postreply 07:33:47

• 不过他最最后的结果并不好 -屋漏痕- ♂ (0 bytes) () 06/20/2007 postreply 08:27:19

• ddd -表情符号- ♀ (0 bytes) () 06/20/2007 postreply 08:58:42

• Your 1st issue is a real issue for SP500 index fund. -A-mao- ♂ (1010 bytes) () 06/20/2007 postreply 06:32:59

• thanks for your thoughtful discussion, -longtermInvestor- ♂ (2216 bytes) () 06/20/2007 postreply 09:16:35

• 回复：thanks for your thoughtful discussion, -yppsilence- ♀ (755 bytes) () 06/20/2007 postreply 09:38:55

• As far as I understand, when investor picks an actively managed -A-mao- ♂ (690 bytes) () 06/20/2007 postreply 09:40:13

• I thin SP 500 is junk. See my previous experience -Sunflower28- ♂ (60 bytes) () 06/20/2007 postreply 16:47:57