“A difficult question I’d like your insight on: How might I identify stocks which I have a reasonable chance of holding forever and enjoying roughly a (U.S.) market rate of return? I am primarily interested in holding in taxable accounts.” – Gilman Miller
A.T.: Your question is either very simple or very difficult, so let me take the simple way out: Just buy SPY, a synthetic security that trades like a stock and mimics the Standard & Poor’s 500, and you will be assured of getting essentially a market rate return (minus a mere two-tenths of one percent) all your life — and with relatively mild tax consequences. You will, thus, outperform most — very possibly 90% — of all your friends and neighbors. Of course, simply buying SPY is boring. Your friends and neighbors will have more fun.
And speaking of fun …
Thanks to Brooks Hilliard for turning me on to www.bobsfridge.com/skew.htm. The day I looked, the lead story had Janet Reno very convincingly calling for the arrest of Congress for posting 445 pages of porno on the Internet. It’s a very funny site.
Quote of the Day
It turns out that advancing equal opportunity and economic empowerment is both morally right and good economics, because discrimination, poverty and ignorance restrict growth, while investments in education, infrastructure and scientific and technological research increase it, creating more good jobs and new wealth for all of us.~Bill Clinton
Request email delivery