Comments on: Morningstar study on investor returns

By: Will Dynamic Funds Continue to Outperform? | MoneySense

Will Dynamic Funds Continue to Outperform? | MoneySense — Tue, 14 Dec 2010 15:25:45 +0000

[...] Morningstar study on investor returns [...]

By: Dale Rathgeber

Dale Rathgeber — Mon, 22 Feb 2010 07:18:20 +0000

CC I have given up trying to convert you to anything other than open-mindedness. You never answered my questions about Norm Rothery or Benj Gallander, and I don’t think that the posts you cited refer to them, only Pat McKeough.
When I referred to mortgage backed securities, I meant MICs, and I now see that you shortly gave them the kiss off in one post because of the Ontario “sophisticated investor” requirement. In Western Canada we don’t have these requirements, and you might therefore reconsider them as an item of general interest. The ones in which I invest have paid 7 -12% for at least ten years, and would be safer than equities and many Corporate bonds. Have you ever considered actual hands-on Real Estate Rental Ownership? If you have, or will post on some or all of these topics and Benj Gallender, or Norm Rothery, you are indeed more open than I have assumed. Assuming so, I apologize.

As an aside, I do believe that one of the backgrounders on my site does discuss Cemil Otar’s “Seasonlity” back-testing for CDN Money Saver. He finds that Sept and Oct are to be avoided. See also Brooke Thackray’s “Time In/Time out”, which comes to a slighty different conclusion (mid Aust to Oct 27), and J Siegal’s Bible, Stocks for the Long Run. All “data-snoopers”.

By: Sampson

Sampson — Mon, 22 Feb 2010 01:55:19 +0000

Dale, your reasoning that CC should help you promote your newsletter is ridiculous. all these claims about responsibility.

You are saying CC should help promote your silly strategy because he has a wide audience. That’s like saying Prime Minister Harper has a responsibility to argue for Communist views because he is influential.

I’m surprised at how patient you are CC. Kudos.

By: Intelligent Speculator | Financial Ramblings

Intelligent Speculator | Financial Ramblings — Mon, 22 Feb 2010 00:40:37 +0000

[...] ways to multiply your your sources of income and pay off your debts at GatherLittlebyLittle -A very interesting Morningstar studyon investor returns described and commented on at CanadianCapitalist -Good ETF newsletter, I just signed up, you might [...]

By: Canadian Capitalist

Canadian Capitalist — Sun, 21 Feb 2010 22:40:51 +0000

@Dale: This is getting a bit ridiculous. You are a lawyer and should know better than suggesting something that can be easily disproved.

REITs, you say?

There are 9 posts categorized as REITs. I’ve also written others, especially about RioCan that don’t appear here:

http://www.canadiancapitalist.com/category/investing/reits/

I’ve even written about MBS back in 2007 (how did that work out for you?):

http://www.canadiancapitalist.com/invesing-in-ipos-mbs-and-emerging-markets/

I’ve even written about active investors, newsletters etc.:

http://www.canadiancapitalist.com/steadyhands-innovative-fee-structure/
http://www.canadiancapitalist.com/steadyhand-mutual-funds/
http://www.canadiancapitalist.com/cymbria-corporation-tsx-cyb/
http://www.canadiancapitalist.com/playing-devils-advocate-on-cymbria-cyb/
http://www.canadiancapitalist.com/the-investment-reporter/
http://www.canadiancapitalist.com/your-turn-checking-out-investment-ideas/

If you think that just because I honestly think that there is little substance to the “October strategy”, I’m being close-minded, so be it. The quality of research you base your investing on leaves a lot to be desired and your own website has little information besides “look at my returns over the past 8 years”.

Sure, you do say “in 8 out of 10 years, on average, the stock market (and equity mutual funds) goes down in September and/or October” but there are no numbers backing up your claim. Why is that? Why is there no explanation of why it would work in the future? It’s your job to make a better case for your strategy. You can’t expect others to do your homework for you.

By: Weekly Round Up – Go green and Save, is Indexing passive?, Skill or Luck and Much More

Sun, 21 Feb 2010 11:06:17 +0000

[...] Morningstar study on investor returns – Canadian Capitalist [...]

By: Dale Rathgeber

Dale Rathgeber — Sun, 21 Feb 2010 08:04:08 +0000

CC’s has done a lot of good for Cdn investors. So much, that his popularity makes him the Oprah of the Cdn Personal Finance world. With that comes great resposibility. He now has investor/followers riding with him in his chosen vehicle, down his chosen road toward a common destination of financial independance. The leader of his followers has an obligation to look around once in awhile to consider: if his vehicle is still safe; if he is on the right road; and even whether the destination remains appropriate. I fear that CC has become closed to consideration of these questions, and that he is consumed by the rectitude of Bogle investing, and refuses to think outside of that box. He should be asking the big questions, and smaller ones that Bogle didn’t ask, such as: should investors have real estate in their portfolios, high yield bonds, REITs, Mortgage backed securities, etc. But, because Bogle didn’t sell these investments, CC’s followers cannot get the benefit of considering the merits of these types of investments, nor of any strategies of which Bogle and CC may have previously unaware. These are all dismissed summarily with platitudinous bromides such as the evidence is “data snooping”, or their “good results will get arbitraged away,” without any serious thought or analysis, other than “Bogle is our God, and therefore we must ignore all that he didn’t recommend (or sell)”.

By: Sampson

Sampson — Sun, 21 Feb 2010 02:16:50 +0000

I wonder how effective this ‘education’ (posts in the comments section of certain articles written by CC are).

If you look back through the wars, clearly those promoting active strategies are no more prevalent now after these wars than they were before – to me that’s a clear indication that someone’s altruistic education isn’t working.

I’ll challenge you Dale to show that CC’s conviction for passive investing strategies is actually detrimental to us reading the blog. Surely you do not believe that a passive strategy leads to negative results. If CC was proposing a losing (negative) strategy – then it would be proper to call him on it.

Not everyone can or wants to be Buffet. I know many people who’s investment philosophy is “Just as long as my $’s don’t decrease” – those solely in CD’s and bonds have actually done quite well over the past 10 year period.

I would also challenge you to ‘hone-up’ to your responsibility of helping us all become rich by improving your site and providing material that makes it as popular as CC’s.

By: AnalystAnalyzer

AnalystAnalyzer — Sat, 20 Feb 2010 22:26:38 +0000

I certainly agree that a sleepy portfolio is the best if the investor does not have enough time to do adequate homework and the majority of people including myself cannot commit to it or do not have the time. I like Jim Cramer’s Buy and Do Homework strategy but again, I think this requires a lot more time than people are willing to spend.

By: Dale Rathgeber

Dale Rathgeber — Sat, 20 Feb 2010 17:38:59 +0000

Is out-performance by Norm Rothery or Benj Gallendar equally unlikely?

As an aside, in theory the more people that pile into momentum and autumn abstinene, the better they are likely to work.