tailieunhanh - The Elements of Investing by Burton G. Malkiel and Charles D. Ellis Dec 14, 2009_4

Tham khảo tài liệu 'the elements of investing by burton g. malkiel and charles d. ellis dec 14, 2009_4', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Index insist that you not do it. Your odds of success are at least better in the stock market than at the racetrack or gambling casino and investing in individual stocks can be a lot of fun. But we do advise you to keep your serious retirement money in index funds. Do what professional investors increasingly do Index the core of your portfolio and then if you must make individual bets around the edges. But have the major core of your investment and especially your retirement funds in a well-diversified set of stock and bond index funds. You can then play the market with any extra funds you have with far less risk that you will undermine your chances for a comfortable and worry-free retirement. CONFESSION Nobody s perfect. We certainly aren t. For example one of us has a major commitment to the stock of a single company an unusual company called Berkshire Hathaway. He has owned it for 35 years and has no intention to sell. If that s bad enough ponder this He checks the price almost every day Of course it s nuts and he knows it but just can t help himself. Another example The other _ 49 __ The Elements of Investing author delights in buying individual stocks and has a significant commitment to China. He enjoys the game of trying to pick winners and believes China is a major story for his grandchildren. Please note in both cases our retirement funds are safely indexed and our children use index funds too 50 III DIVERSIFY A very sad story illustrates the crucial need for investors to diversify their investment holdings. It concerns a secretary who worked for the Enron Corporation during its heyday in the late 1990s and early 2000s. Enron was one of the new-age companies that formed to revolutionize the market for electric power and mass communications. Two charismatic masterminds Kenneth Lay and Jeff Skilling ran Enron and were regularly lionized by the press for their skill and daring. Enron stock was the .