Set forth below is the text of a comment that I recently posted to the discussion thread for one of my columns at the Value Walk site:
I can show you plenty of successful buy, hold and rebalance outcomes, yet you can’t show one successful VII example. Your own example shows a failure with VII! Yet you can’t show one failure from buy, hold and rebalance.
I k ow it is painful for you and you are embarrassed of the situation. That is why you keep posting your lies trying to convince yourself and others that you are not a failure. In the end, we can all see the factual results.
I can show you peer-reviewed research showing that Valuation-Informed Indexing has beat Buy-and-Hold soundly for 145 years running.
When you talk about successful Buy-and-Hold outcomes, you are talking about portfolio balances that exist today that you did not divide by two. Stocks are today priced at two times their real value. Why don’t you divide by two?
The answer is obvious. You don’t like the numbers that show up for Buy-and-Holders when you divide by two.
It’s a scam, Sammy. It’s a money-making thing. Bernie Madoff’s investors were “successful” too until the bottom fell out of his Ponzi scheme. Ponzi schemes benefit only the people pushing them, not the people buying into the scam.
If Buy-and-Hold were a legitimate strategy, we would not see the sort of behavior that we have seen from you for 14 years running now. Not ever, not once. People advocating real strategies don’t ever behave like that because people advocating real strategies see no need to behave like that and would be ashamed to engage in such behavior.
All of this would be 100 percent obvious if it were not for the mountain of money that has been made by the Buy-and-Holders. We are all from time to time tempted by the lure of the easy buck. It’s only when we all feel free to cite the peer-reviewed research in this field that we will be able to help each other to avoid those temptations.
My sincere take.