Yogi Berra says that in theory practice and theory are the same but in practice they are not. Rebalancing requires you to cut your flowers and water your weeds, the exact opposite of what Peter Lynch recommends. One thing about Warren Buffett that most if not all miss is his method of getting around financial regulations. His fund – Berkshire-Hathaway is legally a regular business corporation free of the pesky financial regulations that supposedly protect investors.
The article mentions Edgar L. Smith’s Common Stocks as Long-Term Investments. Great read! Smith set out to prove the conventional wisdom that bonds are better investments than stocks and the data he collected proved the conventional wisdom wrong! For his efforts Benjamin Graham accused Smith of causing the 1929 bull market and following crash by encouraging speculation.
The Captain