My Path to Freedom

[humble_pie]

This made us buy only when things got really rough, like SBUX @ $17, MCD in the $50s, WFC in the teens as well as all those juicy index funds. And when things got rough, I even dipped into stocks for my wife's account - again screaming buys based on both trailing earnings, and projected future returns, but when things serious problems like Bear Sterns, Europe part I and II etc.

sampson i certainly don't mean to pry here, i'm more talking out loud to myself at this late hour of the evening, so no need to look here or to answer.

this is the paragraph that draws my attention. If i have followed you correctly, there was a certain degree of market timing in the index account, with contributions being made in late 08 & subsequently, which in turn have produced the fine gains that the account enjoys today.

but in this paragraph, various stocks were also being bought at 08/09 crash lows, presumably in the stock account. Their timing was the same, ie it was excellent timing. The way i see it, these fortunate stock purchases would have/should have generated the same fine gains - or even better gains - as those enjoyed in the index account.

like i say, just musing out loud, no need to answer.

[Sampson]

Pie, offset by the bad ones - honestly, what business did I have buying OIL or WWE - fundamentals and prospects (due to debt in OIL's case were abysmal). And hence this semi-enlightenment.

Like the indexing, I've been focused on diversification, but take it further to diversification by asset class, nation, and economic sector. I think clear too much. If I had only focused on the best and shorter list (I own far too many individual stocks) I would/could hazard to guess the individual picks could have performed as nicely.

I was beginning to consider hanging up the stock pickers hat, but I think I need to refine, then revisit in another 5 years. It is really the discipline in my wife's portfolio I must emulate, that has been the key to success, not stock picking or indexing, just recognizing TRUE opportunity.

I hate to sound preachy, just using this thread to hash out my own ideas. Poor OP, I totally hijacked this thread. Maybe the mods can move these posts into a new thread titled "Stock picking vs. indexing, a learning experience" or name it "Husband vs. Wife, Wife wins".

[humble_pie]

we will definitely have to find snowbird & propose a magnificent champagne toast.

we will ask her forgiveness on the grounds that it is a highly-charged issue, like the san andreas fault, which rumbles beneath the surface in cmf forum & produces an earthquake from time to time.

[Young&Ambitious]

Although jacked, I am sure the OP is enjoying learning from other's experience. I know I certainly am. Sampson, it will be interesting to compare your returns vs your wife's on a longer term basis. You are like the CMF guinea pig for index vs active

[Sampson]

I often mention this, but my philosophy is simple.

I don't know which is better, so I'll nestle myself nicely into the grey zone. If indexing does better, we benefit, if stock picking does better, we benefit. We essentially reduce the out-performance gap by half.

No home runs here, just a steady-eddy approach to reaching our objectives.