10-30-2013, 03:16 PM
I believe the "average investor" probably is better off dollar cost averaging into an index fund over the long term and sitting tight. The problem is most people overreact and do stupid things such as buying when stocks are really high valued and popular in the news but then selling everything when it's doom and gloom in the media and stocks have already taken that 20-30% hit.
I believe dividend growth investors would be considered "above average investors". We have taken the time to learn more about investing than the general population. We have taken the time to learn a strategy, craft a plan around that strategy and then execute that plan. The hope is that our time was well spent and will result in better than average results.
So I think that average investors should stick with index funds. If anyone is willing to put in a little extra work and effort, then I think they can become above average and hopefully achieve better results.
I believe dividend growth investors would be considered "above average investors". We have taken the time to learn more about investing than the general population. We have taken the time to learn a strategy, craft a plan around that strategy and then execute that plan. The hope is that our time was well spent and will result in better than average results.
So I think that average investors should stick with index funds. If anyone is willing to put in a little extra work and effort, then I think they can become above average and hopefully achieve better results.