Comments on: Greater Volatility = Greater Returns http://www.obliviousinvestor.com/greater-volatility-greater-returns/ Index Investing: The Oblivious Investor Sat, 13 Mar 2010 20:57:00 -0600 http://wordpress.org/?v=2.9.2 hourly 1 By: Singapore Recession http://www.obliviousinvestor.com/greater-volatility-greater-returns/comment-page-1/#comment-83 Singapore Recession Wed, 26 Nov 2008 15:23:03 +0000 http://www.obliviousinvestor.com/?p=359#comment-83 Thanks for clarifying. Thanks for clarifying.

]]> By: Mike http://www.obliviousinvestor.com/greater-volatility-greater-returns/comment-page-1/#comment-82 Mike Wed, 26 Nov 2008 14:32:30 +0000 http://www.obliviousinvestor.com/?p=359#comment-82 Hi SR. Thanks for commenting and tip'ing. :) You make valid points. I was, however, actually basing the article on an entirely different assumption: That the investor is DCAing into a diversified mutual fund (index or otherwise), rather than into an individual stock. Hi SR. Thanks for commenting and tip’ing. :)

You make valid points. I was, however, actually basing the article on an entirely different assumption: That the investor is DCAing into a diversified mutual fund (index or otherwise), rather than into an individual stock.

]]> By: Singapore Recession http://www.obliviousinvestor.com/greater-volatility-greater-returns/comment-page-1/#comment-81 Singapore Recession Wed, 26 Nov 2008 14:28:20 +0000 http://www.obliviousinvestor.com/?p=359#comment-81 Hi, Thanks for the great post! I have Tip'd! However, I think it is necessary for you to point out clearly, to newbie investor readers out there, that the purpose for this post is to purely show that volatility is actually good for dollar cost averaging strategy with the following assumptions: 1. the company does not go into credit default 2. the company's share price continue to grow higher forever 3. the investor know when to take profit 4. This is only one of the factor and by no mean the only factor to improve the investment 5. DCA forever regardless of market condition The reason is because, imagine if you have use DCA strategy on Citi or AIG ... how would your investment looks like if you have started investing 10 years? -75% just my 2 cents :) Hi,

Thanks for the great post! I have Tip’d!

However, I think it is necessary for you to point out clearly, to newbie investor readers out there, that the purpose for this post is to purely show that volatility is actually good for dollar cost averaging strategy with the following assumptions:

1. the company does not go into credit default
2. the company’s share price continue to grow higher forever
3. the investor know when to take profit
4. This is only one of the factor and by no mean the only factor to improve the investment
5. DCA forever regardless of market condition

The reason is because, imagine if you have use DCA strategy on Citi or AIG … how would your investment looks like if you have started investing 10 years? -75%

just my 2 cents :)

]]> By: Paul Williams @ Crackerjack Greenback http://www.obliviousinvestor.com/greater-volatility-greater-returns/comment-page-1/#comment-80 Paul Williams @ Crackerjack Greenback Tue, 25 Nov 2008 16:14:50 +0000 http://www.obliviousinvestor.com/?p=359#comment-80 Good job on explaining one of the key benefits of DCA, Mike! There are a lot of naysayers out there, but you just can't beat the simplicity and strength of a good DCA plan. Keep up the good work! Good job on explaining one of the key benefits of DCA, Mike! There are a lot of naysayers out there, but you just can’t beat the simplicity and strength of a good DCA plan. Keep up the good work!

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