The News Review:
- Mexico’s Slim will keep investing in Latin America
- S&P 500 index investing isn’t lame, it’s smart
- How Does Value Investing Differ from Market-Timing?
Mexico’s Slim will keep investing in Latin America
Reuters
“We continue making significant investments throughout LatinAmerica, and Argentina is one of the countries we will keepinvesting in,” Slim told reporters in Buenos Aires. The tycoon and other business executives were in Argentinaaccompanying Mexican President Felipe Calderon on a statevisit. Slim said the region is well-positioned to weather a globaleconomic downturn, which has already sparked recessions inpowerhouses such as Germany and is slashing growth expectationsin emerging-market nations as well. “Fortunately, this is hitting Latin America at a time whencountries have healthy public finances and plenty of reserves,”Slim said. Latin American economies boomed in the last five years amidsustained global growth and robust demand for their commodityexports.
Related from Harrypotterstore: Harry Potter: Minister wants to resurrect Latin in schools
S&P 500 index investing isn’t lame, it’s smart
USA Today
It’s pretty typical for investors who try to time the market and pick winning stocks to have terrible timing and make some bad picks. When that happens, they will gain less than 10% or even lose money when the market is up 10%. There’s another benefit to index investing. You can buy an index mutual fund that tracks the S&P 500 that charges less than 0. 15% as an annual expense ratio. In comparison, many mutual funds with human stock pickers charge 1.
How Does Value Investing Differ from Market-Timing?
Morningstar.com, IL
In fact, there is a vast gulf between being a value investor and being a market-timer. In this piece we’ll discuss what the difference is and why you should be the former. The Business-Owner Approach to InvestingThe classic form of value investing is to think like a business owner and aim to purchase ownership units in businesses for less than those businesses are worth. Those who take the business-owner approach to investing tend to understand that securities can get even cheaper over a one-, two-, or three-year period, but that the market should realize the correct value of businesses over the longer run. Maintaining an ownership approach to investing and understanding that you originally purchased the assets at cheap prices can help you stay the course when the market keeps making the prices cheaper in the shorter run. The same is true for selling. As told in Charles Ellis’ book Capital, when asked how he supposedly timed the market so well by selling stocks in early 1929, the founder of Capital Research (parent of the American Funds) Jonathan Bell Lovelace remarked that he realized that stocks were selling for more than what any reasonable buyer would pay for the entire underlying businesses.