The real philosophical point is that stock index funds are a method of participation in the profits of public corporations. Picking out a few stocks just raises costs: mgmt and transactional. Read "A Random Walk..."
The assumption I make is that, over time, the average business is going to make a profit, and I want to participate in the dividends and capital growth. I want to be diversified in many businesses at one time and I want low costs...
Reader Comments
Back to article
Tiny Tuna of IL 10:10PM March 18, 2010