Does DCA strategy really work in long term?

[w1rbelw1nd]

No point trying to convince people who dont want to be convinced, at least that what i tell myself when meeting people who are of a strong opinion.

I am just sharing my limited knowledge and opinion to those who are curious. Thats all.

 

[BBCWatcher]

And I'm telling if all he wants is to beat the market like alexchai01 did, he simply has to DCA Apple and Google.

The latter is known as Alphabet now. Only expert investors who consistently beat the market know the correct name of the company.

OK, just to explain your recommendation, you're recommending betting big and long on two stocks that are presently richly valued by any "traditional" measure. (Although via dollar cost averaging.) The first one is a bet on the iPhone (over half of Apple's revenue, usually more like two thirds), and the second one is a bet on online advertising (over 80% of Alphabet's revenue). If either the iPhone stumbles (or merely pauses in its growth) or if online advertising stumbles (or merely pauses), you're pretty much screwed -- it's that simple. If either one of them suffers any sort of corporate calamity such as an accounting scandal or a data breach analogous to Yahoo!'s, especially after European GDPR comes into force (soon), it's highly likely you're screwed.

We ought to be able to agree it's a risky bet. Good luck with it!

 

[Purplestars]

The latter is known as Alphabet now. Only expert investors who consistently beat the market know the correct name of the company.

OK, just to explain your recommendation, you're recommending betting big and long on two stocks that are presently richly valued by any "traditional" measure. (Although via dollar cost averaging.) The first one is a bet on the iPhone (over half of Apple's revenue, usually more like two thirds), and the second one is a bet on online advertising (over 80% of Alphabet's revenue). If either the iPhone stumbles (or merely pauses in its growth) or if online advertising stumbles (or merely pauses), you're pretty much screwed -- it's that simple. If either one of them suffers any sort of corporate calamity such as an accounting scandal or a data breach analogous to Yahoo!'s, especially after European GDPR comes into force (soon), it's highly likely you're screwed.

We ought to be able to agree it's a risky bet. Good luck with it!

Everyone knows it's Alphabet. Don't need to act superior about it.

No one says it's not risky. But those who have taken the risk, have been richly rewarded. I think you should recognize and respect the balls on these people which somehow you are very unwilling to do so.

You only like people who do the same as you.

 

[TabascoSauce]

State where and when I said that.

Nobody's ever gone broke with hindsight investing, but thats only possible with a time machine.

Erm consistency is all that matters in the long run. Nobody cares that you manage to beat the market (taking outsized risk) in a bull market for a couple of years and then lose most of it in a bear market, btw thats typically what happens to the retail investor, they avoided the stock market between 2008-2015 and now they are coming back in when stocks are richly valued.




94% fail to beat the market, those odds sound better than casino odds to you? Do you really think its so easy to pick a winner like AMZN when there are literally thousands of stocks that do poorly, even in a bull market?

Hindsight bias is a logical fallacy so its not a good thing, and no its got nothing to do with your example.

I specifically highlighted the words "possible" and "easily achievable" in my last reply and oh well... I don't even know why I bother to reply.

dont bother with purplestars lar. i had a brief exchange him in another thread and concluded that it is not possible to debate with someone who is too stupid to understand.

 

[Purplestars]

dont bother with purplestars lar. i had a brief exchange him in another thread and concluded that it is not possible to debate with someone who is too stupid to understand.

Hard to debate when we are actually agreeing with each other, just that we have different viewpoints on the same object.


Nice to know you just give up and wrap yourself in a cocoon telling yourself others are stupid when you are defeated though.

 

[limster]

dont bother with purplestars lar. i had a brief exchange him in another thread and concluded that it is not possible to debate with someone who is too stupid to understand.

The way he talks, I think he is a beginner with no track record.

 

[kannis_ng]

I only go casino

All,in

 

[Purplestars]

The way he talks, I think he is a beginner with no track record.

Probably the same beginner track record as you, as I'm an indexer.

I'm just not an inflexible old fool open to new ideas and questioning everything I do.

 

[Perisher]

That’s enough insults. Let’s stick to the topic, if nothing else. Thanks.

 

[klarklar]

Everyone knows it's Alphabet. Don't need to act superior about it.

No one says it's not risky. But those who have taken the risk, have been richly rewarded. I think you should recognize and respect the balls on these people which somehow you are very unwilling to do so.

You only like people who do the same as you.

There is no need to be rude and drive away helpful forummers. It takes time to reply you. You should respect that.

 

[deepblueli]

I should name this thread title better. Haha..

Let's close this thread.

 

[Perisher]

Thread closed.