Fundztrader is Closing Down

Unfortunately the team behind Fundztrader has stepped down and will no longer continue publishing new information.

There will be no new ratings posted, effective immediately!

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Buy and Hold Investing

Investing Like Buffett - What’s it Like to Invest Like Buffett

Originally published in 2006, investing like Buffett BRK has fared better over the last 3 years, as in the 3 years 2006-2008 BRK was up about 8% total (still a little worse than a money market fund) the S&P 500 did a lot worse, losing about 29% in that same period of time.

One of the most common pieces of investment advice is to find a good investment and to simply hold on to it. Known sometimes as buy and hold investing, it doesn’t seem to be working as well as it once did. A common response of buy and hold advocates is to point to the success of some of the famous value investors. The most famous of the contemporary value investor is Warren Buffett.

Morningstar Rankings - Using Morningstar Rankings for your Fund Selections

We’ve had a couple of articles on the value of using Morningstar Rankings or Ratings to make your mutual fund selections. It is hard to research mutual funds without running into the Morningstar rankings, you’ll find them even on the brokerage sites like Fidelity or Ameritrade. But the research on how effective a tool they are for predicting a funds future performance does not generally paint a rosy picture. We’ve written on that topic of Morningstar rankings in the past.

Is Google Stock Overpriced? - How Inflated Can Google Stock Get?

Has Googles stock price inflated too far? The “fair valuation” of Google’s stock price, and whether is Google is overpriced is the topic of discussion at many a water cooler these days.

The battle of valuing Google’s stock price, whether based on earnings, cash flow, market share growth, aquisition strategy, or some other form of financial engineering is a discussion that we have little to contribute to. I would make the observation that at a current market cap of over 170 billion dollars, that it’s closer to the top than it is a bottom. To make the case that it could be a Peter Lynch ten bagger would imply that it would get to a market cap of almost 2 trillion dollars, which is a pretty rich valuation by almost anyone’s standard.

New Market High - So Buy and Hold Works?

Today the market as measured by the S&P500 made an all time high. It finally eclipsed the high set in March of 2000. We are happy to see that, as all our systems are either at new all time highs or withing 1% of it as well.

Of course, what that means is that over the last 7 years, if you were invested in the grandaddy of all index funds, the Vanguard 500, even reinvesting the dividends the total return was just slightly less than the return of Fidelity’s money market fund FDRXX, but included a much more exciting drawdown of almost 50%. So what have the markets done over the last 10 years?