An Introduction

Hi. Welcome to BourGroup and my blog. Phil

Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.

I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.

"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.

Monday, September 24, 2007

Fundamental Indexing

From one of my favorite professionals:

"... I think there's a lot of evidence that shows those very largest ones [are overvalued]. There's evidence that we've done on the S&P 500, where if you take the top market value stock every year over the 50 years of the existence of this index, there is tremendous underperformance of that strategy. Take the top 20 stocks, which is only 4 percent of the index in number, but one-third of the market value of the index, and it underperforms by more than 150 basis points per year over 50 years. So yes, those big-cap stocks do underperform and there is evidence that they do so significantly..."

Jeremy Seigel

A reason to consider Fundamental Indexing rather than Cap-weighted indexing.

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