Stocks for the Long Run : the Definitive Guide to Financial Market Returns and Long-term Investment Strategies

For example, the total earnings of all stocks in the S&P 500 Index in 2006 were about $735 billion. Google’s earnings came t ...

THE HISTORY OF FUNDAMENTALLY WEIGHTED INDEXATION The motivation for fundamentally weighted indexation began in the in- ternation ...

The historical evidence to support fundamentally weighted index- ation is impressive. From 1964 through 2005, the compound annua ...

This will be especially true if stock prices behave more like the noisy mar- ket hypothesis and less like the efficient market h ...

21 CHAPTER STRUCTURING A PORTFOLIO FOR LONG-TERM GROWTH [The] long run is a misleading guide to current affairs. In the long run ...

PRACTICAL ASPECTS OF INVESTING To be a successful long-term investor is easy in principle but difficult in practice. It is easy ...

Despite this excellent long-run record, stock returns are not inde- pendent of the level of earnings. In Chapter 7 we learned th ...

There are many ways in which to match the returns on major stock indexes. The last decade has witnessed the explosive growth of ...

dividends or earnings rather than by its market value. Fundamentally weighted indexes have had higher returns and lower risks hi ...

Those who finally abandon trying to pick the best funds are tempted to pursue an even more difficult strategy. They attempt to b ...

the lives of both workers and investors around the globe. The main the- sis of this book, that stocks represent the best way to ...

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Abbott Labs, 59i, 60i Accounting scandals, 89, 234–235 Accruals, 108 Actual high/low, 296n Adobe, 156 The ADP National Employmen ...

Bias(Cont.): representative, 326 return, in stock indexes, 46–47 self-attribution, 326 survivorship, 18, 343, 343i Big Board (se ...

Chicago Purchasing Managers, 244 China: global market share of, 178, 179 i, 180, 180i sector allocation and, 177 China Construct ...

Dividend yields, 145–149, 146 i–149i interest rate on government bonds above, 95–97 ratio of market value to, 120, 120 i Dodd, D ...

Europe: global market share of, 179, 179 i, 180i sector allocation and, 175i, 177 Evans, Richard E., 356 “Everybody Ought to Be ...

Global investing, 161–184 cycles in foreign markets and, 164–167, 164i diversification in world markets and (seeDiversifi- catio ...

Index options (Cont.): selling, 267 Indexation: capitalization-weighted, 351–352, 352i, 353–355 fundamentally weighted, capitali ...

Lakonishok, Josef, 295n, 304n, 308 n Lampert, Eddie, 57 Lander, Joel, 113n Lane Bryant, 60i Large-cap stocks, small-cap stocksve ...