[闲谈] ZT B&H and DCA

tianfangye

BY WXC 不惑
Warren says don't lose money - so what does that mean exactly.... I think he means 'buy what you know, and you better be damn sure you know what you know'.

In real execution, we all know draw downs are part of the game.. 死鳖 has been mentioned a few times here... as far as DCA goes, it's ALL mental.... everyone knows mathmatically it works...

http://financeandinvestments.blo ... asdaq-100-1986.html

for 25-year annualized, it's 12% pretty much.... and once you get a time frame longer than 5 years, it's very rare to lose money.

plus the DCA method itself has about a 2% advantage from buying more when cheap.... so you are looking at 14% internal rate of return.... how can you NOT get rich.

the problem is really the draw downs.... people can't handle it.

I am already losing interest in DQ, because of all the chicken little knee jerk reaction to every 0.25% move.... you never get rich with such chicken sized stomach that can't take any temporary draw down.

have to get over the psychological barrier first, no matter what you do... maybe visit a shrink, or meditate, or go to Tibet, or try to give your money to the homeless....

get used to the idea of short term losses for the long term gain.

ok.. enough blah blah.