Index funds will only remain a good choice for the next couple years and
for the really long term. Broader funds, especially ones that represent
international markets, would be better choices for the medium-term. For
mutual funds, I prefer ones that do not track a particular index, but you
have to shop more carefully to get good results.
>Warren Buffett's approach makes a lot of sense to me. It's too bad that he
>doesn't know much about high tech and so won't invest in that area. My one
>and only investment so far (Coca Cola) was inspired by Buffett, though I
>think I should have gone with Microsoft, as I almost did but it's price was
>relatively high at the time. I'm happy so far though: I bought my few
>shares of stock a month ago. It's up 13%, so I can boast -- for now! -- of
>an annualized return of 156%.
Not to burst your bubble, but after trading costs, you pretty much tracked
the market indices for the same period. Also, diversification is important
to reliable growth and lowering risk.
-James Rogers
jamesr@best.com