DD Support Board and Research Team

[bar1080]

Average *is* a dirty word.

New investors don't understand stock Averages which represent average stock performance, NOT average investor performance which tends to be dreadful.

Very, very few investors have equaled the S&P 500 over an extended period. Also not many understand that the Dow and S&P 500 (as normally stated) don't include dividends received... a fat addition over long periods. Too many people buy at tops and sell at bottoms. Averages do great because they don't suffer from emotions that hobble us humans.

30 years ago when I'd mention index investing to personal friends I was always asked why ANYONE (especially a lawyer with decades of investing experience) would settle for mediocre or average investing. Now many of those same people own index funds. At least those who didn't get mad at Wall Street... and sell everything... in 2001 or 2009.

Chasing above average returns dooms investors and probably costs more than scams (the subject of this board).