You called it: temperament. This is the key ingredient that is missing from a vast majority of investors.rodbarc wrote: ↑ Sorry, I wouldn't say that. Finance is not my background. My full-time job has nothing to do with investing or trading. Discipline is the biggest reason, I think, that I can consistently keeping implementing the same plan, which is nothing new or out of this world. Anyone that dedicates can do that too, it's a skill to learn like any other. The majority don't want or don't care for the extra effort - that's a different matter. Temperament plays a big role - I know many indexers that couldn't tolerate 2008 crash. I'm sure many others will panic during next crash. Behavioral finance should be mandatory for every investor. None of that makes it a scam, it's the ability to separate emotions. Easier said than done, but I'm a strong believer that anyone can learn and do it if they put their mind to it and get support for those that can help with techniques.
Rod
Read this little nugget: http://www.investmentzen.com/blog/how-i ... dex-funds/
Not many people realize this but investing in individual companies requires a tremendous amount of time and patience, not to mention discipline.