Comments on: The Four Pillars of Investing: Ch 1, 2 http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/ Investing and Personal Finance Sat, 11 Feb 2012 04:38:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: A twisty road « centsprout http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/comment-page-1/#comment-1814 A twisty road « centsprout Tue, 30 Oct 2007 20:56:13 +0000 http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/#comment-1814 [...] bank is near the library and so I went and picked up The Four Pillars of Investing that seems to be so highly recommended. Maybe by the time I’m done reading it, I’ll have a better plan to get [...] [...] bank is near the library and so I went and picked up The Four Pillars of Investing that seems to be so highly recommended. Maybe by the time I’m done reading it, I’ll have a better plan to get [...]

]]> By: <![CDATA[FourPillars]]> http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/comment-page-1/#comment-1584 Sun, 22 Jul 2007 05:10:09 +0000 http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/#comment-1584 Just ignore the second comment - I had multiple comments going in multiple browsers and clearly it didn't work. Mike Just ignore the second comment – I had multiple comments going in multiple browsers and clearly it didn’t work.

Mike

]]> By: <![CDATA[FourPillars]]> http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/comment-page-1/#comment-1583 Sun, 22 Jul 2007 04:16:06 +0000 http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/#comment-1583 Thanks for the link! Mike Thanks for the link!

Mike

]]> By: <![CDATA[FourPillars]]> http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/comment-page-1/#comment-1582 Sun, 22 Jul 2007 03:52:47 +0000 http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/#comment-1582 Thanks for the link! Obviously I enjoyed the book quite a bit but one comment I'd like to make is that he is pretty steadfast (absolute?) on the assertion that higher risk = higher reward. I'll agree that statement makes sense in theory over the very long run but in reality it may not always be perfectly true. He uses the example of small cap vs large cap (as u mentioned) but the data he uses stretches over quite a few decades as I recall. Even if that trend continues in the future - the time period involved is so large that it might be irrelevant for most investors. Mike Thanks for the link!

Obviously I enjoyed the book quite a bit but one comment I’d like to make is that he is pretty steadfast (absolute?) on the assertion that higher risk = higher reward. I’ll agree that statement makes sense in theory over the very long run but in reality it may not always be perfectly true. He uses the example of small cap vs large cap (as u mentioned) but the data he uses stretches over quite a few decades as I recall. Even if that trend continues in the future – the time period involved is so large that it might be irrelevant for most investors.

Mike

]]> By: <![CDATA[FinancialJungle]]> http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/comment-page-1/#comment-1580 Fri, 20 Jul 2007 20:17:17 +0000 http://www.moneysmartsblog.com/the-four-pillars-of-investing-ch-1/#comment-1580 Relative valuations of companies within the same sector (e.g. Walmart and Kmart) are usually pretty efficient, although not necessary so between sectors. Just look at banks versus tech companies in 1999/2000. This isn't a 20/20 hindsight, because virtually all value investors steered clear of the unsustainable high PEs of tech stocks. Relative valuations of companies within the same sector (e.g. Walmart and Kmart) are usually pretty efficient, although not necessary so between sectors. Just look at banks versus tech companies in 1999/2000. This isn’t a 20/20 hindsight, because virtually all value investors steered clear of the unsustainable high PEs of tech stocks.

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