2010 Rate of Return: 17.0% (S&P 500 was 14.72% Total Return)
2009 Rate of Return: 29.4% (S&P 500 was 26.46% Total Return)

Sunday, December 12, 2010

Don't Follow the Herd

This is tragic. Investors pulled out of stocks when they were low, and then invested in bond funds and lost there too. I hope the lesson is learned. The correct lesson is not to stay away from stocks or bond funds or any other particular investment. Rather, the lesson is to not follow the herd, and to not sell low or buy high. These investors forgot to be proper contrarians.

Current year-to-date return: 15.2%

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