Diversified,
cheap basket of stocks was his strategy for risk.
Not exact matches
The NOBL ETF has a minimal expense ratio
of 0.35 %, which is consistent with other similar active ETF's, but likely much
cheaper than purchasing this
basket of stocks on your own, after all buying and maintaining a portfolio
of 50 Dividend Aristocrats is not realistic for most investors.
These
baskets are up to 30
stocks for one low price, which makes Motif Investing one
of the
cheap investing sites out there.
Great post.i think time horizon and diversification are the key factors from my experience.The passive screenens works best on a
basket of companies.if you have picked one or two
cheap stocks based on valuation only most
of the time they are
cheap for the right reason and they turns out to be a value trap.However, on
basket approach the averages will take care, so winners will take care
of the losers.
He bought
baskets of Korean
stocks in 2005 in his personal account that were extremely
cheap (3 - 5 times earnings)-- an experience that said brought him back to his youth.
Normally when futures were trading far enough below the index itself, the arbitrageurs sold short a
basket of stocks that closely tracked the index and bought an offsetting position in the
cheaper index futures.
Do you think that what Walter Schloss did (buying a diverse
basket of cheap stocks with almost no field research) is now obsolete - or at the very least superseded by computerized quantitative investing?
The rest
of the time I want to own a
basket of above average
stocks at below average prices, and also a small
basket of cheap stocks relative to net tangible assets.
Cheap stocks require more
of a
basket approach to allow for specific company risk.
But overall, most
of my ideas come from the philosophy
of Greenblatt and Graham that buying a
basket of stocks that are
cheap, preferably with high quality (high return on capital combined with high earnings yield in Greenblatt's case) will work out over time.
It may work, but I'd rather buy a
basket of cheap and good
stocks whose prices reflect poor outlooks and difficult business conditions.