This is a great article. I wish he had explained three things in more detail:
1) that you can only count on this over longer timeframes (15+ years)
2) his argument assumes an inflationary environments (versus a deflationary environment like Japan and Europe)
3) if you don't have the skills to read a Exxon Mobile or Coca Cola income/balance sheets once a quarter and find it fun you should invest in index ETFs.
These three things are why average investors should have a mix of stock and bond index funds in their portfolio that is based on their timeline.
Shameless plug: I'm bootstrapping a startup to help average investors manage their portfolios. If you are interested in getting started with or managing an existing index oriented asset allocation investment plan, I'd love to help you at https://azul.io (free of charge to folks signing up before I get Stripe integrated)
1) that you can only count on this over longer timeframes (15+ years) 2) his argument assumes an inflationary environments (versus a deflationary environment like Japan and Europe) 3) if you don't have the skills to read a Exxon Mobile or Coca Cola income/balance sheets once a quarter and find it fun you should invest in index ETFs.
These three things are why average investors should have a mix of stock and bond index funds in their portfolio that is based on their timeline.
Shameless plug: I'm bootstrapping a startup to help average investors manage their portfolios. If you are interested in getting started with or managing an existing index oriented asset allocation investment plan, I'd love to help you at https://azul.io (free of charge to folks signing up before I get Stripe integrated)