Proof Indexing Wins

10Aug08

I’ve blogged about tracking my portfolio in Cake. I took a look at my performance this morning and bench marked the Fratboy Portfolio against the S&P500 and the Cakedex, an index of all Cake investors. Check out the results:

Fratboy Investor’s Portfolio: -8%

S&P500: -12%

Cakedex: -16%

What Does This Tell Me?

  1. The market is doing really bad in general. If your friends are bragging about making 2-bagger they are lying.
  2. Most of the Cake folks are active investors. Indexing has suffered less this year in comparison.

My advice during these times is to continue investing in index funds. It’s a buyer’s market, when the market rebounds you’ll be in for a nice chunk of change.

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