02-05-2017, 09:08 AM
@crimsonghost, not sure your comparison is apt. I am referring to index fund investing in general (the benchmark itself) and not referring to active managers/professional investors working at banks/hedge funds/other investment firms. The benchmark index itself does not care whether a month, quarter or year's returns are positive or negative. It is what it is.
@DivWatcher. Whatever way you slice it, dividend growth investing is essentially a "stock picking" strategy. As a dividend growth investor, we are betting that this one particular company can perform better than its peers and the argument taken to an extreme -- beat the market. Of course, we are not naive enough to think that, so we hedge our bets by diversifying our picks and mitigating our portfolio risks.
I personally dont think I am smart enough to beat the whole market and while dividend growth investing makes sense, index investing via funds also makes a lot of sense to me -- which is why I follow a a more multi-pronged approach. Part of my portfolio is in DG stocks and part of it in index funds -- so essentially I am hedging my investing strategy.
The last sentence in my previous post refers to a small subset of microcap companies that are not tracked by index funds. If there were indexes that could track it, I would do it...but until then, I am happy to pick stocks
@DivWatcher. Whatever way you slice it, dividend growth investing is essentially a "stock picking" strategy. As a dividend growth investor, we are betting that this one particular company can perform better than its peers and the argument taken to an extreme -- beat the market. Of course, we are not naive enough to think that, so we hedge our bets by diversifying our picks and mitigating our portfolio risks.
I personally dont think I am smart enough to beat the whole market and while dividend growth investing makes sense, index investing via funds also makes a lot of sense to me -- which is why I follow a a more multi-pronged approach. Part of my portfolio is in DG stocks and part of it in index funds -- so essentially I am hedging my investing strategy.
The last sentence in my previous post refers to a small subset of microcap companies that are not tracked by index funds. If there were indexes that could track it, I would do it...but until then, I am happy to pick stocks