Set forth below is the text of a comment that I recently posted to the discussion thread for another blog entry at this site:
Hi Rob ,
After learning about Value Investing on your site , before I had been brain washed by my Buy and Hold Broker. I finally learned on my own about Value Investing I will never go back. In fact using your calculator with these insane values I allocated 20% to stocks. Am I glad I did I have still had a decent gain with no worry! If my portfolio looses 80% I am still only down 16%, I can live with that. I feel no emotional worry this way.With Buy and Hold I lived with emotional fear of loosing 50% of my retirement portfolio.The rest of my portfolio went into Tips ETF, not bonds. I am just an average guy not a pro. I thank you again for doing the research because it saves us emotional hard ship and family problems as well.
There are millions of middle-class people who are seeking a investment strategy that takes the worry out of providing for an old-age retirement, Max. The Wall Street Con Men fight me like the dickens but the full reality is that they could make a lot of money with this if they would just chill out a bit. People would buy more stocks if most of the risk of stock-buying were removed from the experience. In the long run, Valuation-Informed Indexing will bring in more profits than Buy-and-Hold.
This is a win/win/win/win/win. The only hard part is navigating the transition. People who built their careers around Buy-and-Hold see it as a turf battle and don’t take the time to think through the long-term marketing implications. Taking most of the risk out of stock investing makes stocks a more appealing asset class. I am the most pro-stock guy out there! Lots of people who think of themselves as being pro-stock just don’t see it yet.
And of course my work builds on the foundation built by the Buy-and-Holders. So in no way, shape or form should anything I have done be seen as a dig at them. They make themselves look bad by fighting an advance that they made possible in the first place. I praise the Buy-and-Holders all the time for all the good that I have done. But they cannot bear to hear praise coming from me. They attack me because I point out the one mistake they made. They don’t get it that none of the good they have done ends up counting for anything in the long run if they don’t fix the mistake.