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What would your answer be for a person with a 20-25+ year horizon, looking for a sector with alpha on that time scale. Like say, an Intel or GE circa 1982 and
by aswanson 10y ago
What would your answer be for a person with a 20-25+ year horizon, looking for a sector with alpha on that time scale. Like say, an Intel or GE circa 1982 and not needing to touch it until 2007?
- twblalock 10y agoYou are just as likely to pick a loser as a winner over that duration unless you have insider information. Just own the whole market and settle for average returns, which are a lot better than what you would get if you bet on the wrong sector or companies.
- aswanson 10y agoYou don't think that there is alpha in say the Russell 2000 mid-cap over the DJIA in the long term? More room in small and mid caps to grow.
- twblalock 10y agoThere is also more room in the small- and mid-cap companies for failure. If they had the kind of massive revenue, cash reserves, or really strong product lines that are needed to make it through hard times, they would be large-cap companies.