I’ve posted Entry #41 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called Forbidden Research.
Juicy Excerpt: The post by “Richard” on January 20, 2011, at 8:00 am states that: “There isn’t enough data for any conclusion to be statistically significant.” That’s false. There are tests that statisticians use to determine whether results are significant or not and Pfau’s research passes the tests (Pfau, who does research for a living, obviously would not have posted the research if this were not so). On top of that, the data set that Richard is saying is no good is the same data set that has long been used to make the case for Buy-and-Hold. If the data really were no good, it wouldn’t be right to use it to promote Buy-and-Hold, would it? But the Bogleheads Forum has been pushing Buy-and-Hold relentlessly for years now.