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Total returns is calculated at the point of sale. How do you argue this and not cherry pick? For instance, as mentioned this stock is very low risk so if you lo
by xarien 13y ago
Total returns is calculated at the point of sale. How do you argue this and not cherry pick? For instance, as mentioned this stock is very low risk so if you look at the drop during the crashes, you'll notice that it doesn't fall nearly as hard as other riskier stocks (risk vs reward). For a rock solid stock (low risk large cap) that offers great dividends, it's really hard to beat MSFT.
- mathattack 13y agoThere are 2 ways to look at it: 1) Look at total returns after the fact. Over the past 10-15 years, Microsoft has underperformed the indexes, even on a risk adjusted basis. (If you want to compare it to low vol stocks rather than tech, look at DFA's value fund) Generally high dividend stocks outperform low dividend stocks over the long haul, so this non-performance is even more striking. 2) You can make a judgment that in the future this will change. What's the basis of this, when most stock pickers are wrong as often as they are right?