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I'm not convinced there's any passive investment that will beat a Vanguard S&P 500 index in the long-run. 99% of people would be best-served to just dump 100% i

I'm not convinced there's any passive investment that will beat a Vanguard S&P 500 index in the long-run. 99% of people would be best-served to just dump 100% in that. I've made some pretty incredible returns researching and investing, but in retrospect even though I did very well I would have been better off spending that time earning more money rather than investing it. My net worth isn't big enough that an extra percentage gain moves the needle that much.

minsight 10y ago
I'd be more inclined to take this approach, but to diversify geographically and to also include some fixed income in there, too. The US market may pause someday, but there is a much slimmer chance that the entire world's equities and their fixed income will get nailed at once.
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vladimirralev 10y ago
S&P is too US-scoped. One bad president pick and it will be all gone. It's better to diversify 20-30% worldwide and a little into assets with different source of value like gold, real estate, crypto, oil, whatever. Just S&P is not going to cut it forever. I know central banks are buying it now too, so it may find itself being very political soon.
- austenallred 10y ago
  > S&P is too US-scoped. One bad president pick and it will be all gone Respectfully, if that were true it would all have been long gone a long time ago :)
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- gcb0 10y ago
  what's a fund that "bets against" S&P?
  - austenallred 10y ago
    SPXS?
nugget 10y ago
If you want a single index fund that you can buy and hold, and never worry about again, SPY is one of the best. Even Warren Buffet has endorsed this approach many times. If you're willing to spend 15-30 minutes per month managing finances, then buy the Bogleheads' Guide to Investing and read it cover to cover. Once you've done that, head over to the Bogleheads forum [http://www.bogleheads.org http://www.bogleheads.org] and you can learn as much or as little as you want. Taylor Larimore, one of the authors of the book (and former Band of Brothers WW2 paratrooper), is still active on the forum at the age of 93.
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- tanderson92 10y ago
  Warren Buffet has endorsed holding an S&P500 index fund many times. He has not endorsed SPY as a vehicle for that. SPY is more than twice as expensive as Vanguard's or iShare's S&P500 funds, and has lagged them since inception. It is also the case that SPY is organized as a unit investment trust so it cannot lend shares for securities lending revenue, as other S&P500 index funds can and do. For all these reasons, I expect SPY to underperform VOO. In fact Warren Buffett picked Vanguard's S&P500 fund for his long bet (http://longbets.org/362/ http://longbets.org/362/) Agree with the rest of your post. Taylor Larimore is a mensch.
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minsight 10y ago

I'd be more inclined to take this approach, but to diversify geographically and to also include some fixed income in there, too. The US market may pause someday, but there is a much slimmer chance that the entire world's equities and their fixed income will get nailed at once.

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vladimirralev 10y ago

S&P is too US-scoped. One bad president pick and it will be all gone. It's better to diversify 20-30% worldwide and a little into assets with different source of value like gold, real estate, crypto, oil, whatever. Just S&P is not going to cut it forever. I know central banks are buying it now too, so it may find itself being very political soon.

austenallred 10y ago
> S&P is too US-scoped. One bad president pick and it will be all gone Respectfully, if that were true it would all have been long gone a long time ago :)
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gcb0 10y ago
what's a fund that "bets against" S&P?
- austenallred 10y ago
  SPXS?

nugget 10y ago

If you want a single index fund that you can buy and hold, and never worry about again, SPY is one of the best. Even Warren Buffet has endorsed this approach many times. If you're willing to spend 15-30 minutes per month managing finances, then buy the Bogleheads' Guide to Investing and read it cover to cover. Once you've done that, head over to the Bogleheads forum [http://www.bogleheads.org http://www.bogleheads.org] and you can learn as much or as little as you want. Taylor Larimore, one of the authors of the book (and former Band of Brothers WW2 paratrooper), is still active on the forum at the age of 93.

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tanderson92 10y ago
Warren Buffet has endorsed holding an S&P500 index fund many times. He has not endorsed SPY as a vehicle for that. SPY is more than twice as expensive as Vanguard's or iShare's S&P500 funds, and has lagged them since inception. It is also the case that SPY is organized as a unit investment trust so it cannot lend shares for securities lending revenue, as other S&P500 index funds can and do. For all these reasons, I expect SPY to underperform VOO. In fact Warren Buffett picked Vanguard's S&P500 fund for his long bet (http://longbets.org/362/ http://longbets.org/362/) Agree with the rest of your post. Taylor Larimore is a mensch.

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