Update- Timing the market is a fool's or genius's game
We have been receiving a number of calls from clients lately asking about speculating (selling now to buy back in when prices are lower).
Tobias Carlisle put this question to the test in a statistical study using 88 years of US stock market index returns to see what it would do to returns if you sold and held cash when the stock market was expensive.
His conclusion is that you would have been better off remaining fully invested the whole way through.
This goes directly to the heart of Buffett's investment philosophy which is that you only need to get one decision right when it comes to investing and that is to buy more quality assets at discounted price when the opportunity presents itself.
The magic however is when you couple that with the above average abilities of a select few professional investment teams.
Attached is one professional investment team's track record against the S&P500 from 1965 to 2013.
They have delivered an out performance of 9.9% per annum net of fees above the benchmark over 48 years and will be standard against which all other professional investments teams are measured.
The team is of course that of Warren Buffett and Charlie Munger.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via Contact Us or to call me on +61 2 9267 2322.
31st-July-2014 | 
