Ouch, Tough crowd. First off, the 10% stocks was just playmoney invested in individual stocks rather than Canadian equities in an ETF. Secondly, I don't need a refresher course on what the Couch Potato strategy is all about and I understand it fully. There are many different ways to set up the strategy depending on your stomach (ie Conservative vs Aggressive) and the reason for my question was to see how most people are doing with the strategy whether it be over 10 years or 10 months. I have heard some people say it doesn't work for them and my curiousity wonders why.I guess I should watch how I word these comments so I don't get attacked by the CMF vultures again. Thanks for those who spoke up. Hope to see more comments
Buy-and-holders generally outperform active traders over the long term.
Buy and hold the lowest fee, broadest based, most largely held ETF's and then resist the temptation to outsmart yourself by getting into sector specific ETF's and other more specialized products.
Never underestimate the ability of the financial services industry to separate you from your money.
"My ETF portfolio has not been performing any better than my old mutual fund portfolio."
Could the problem be lack of diversification?
Originally Posted by Belguy
Diversification does not provide better returns. Diversification CAN provide better risk-adjusted returns, but not necessarily better nominal returns.