Buying Quote by James O'Shaughnessy
“If you're indexing to the S&P 500, you're buying the most expensive names in the market.”
About This Quote
Source Book: The Little Book That Still Beats the Market, 2010
Investing in the S&P 500 means buying the most expensive stocks, which may not be optimal.
In simple terms: S&P 500 stocks are pricey.
Consider cheaper alternatives.
Themes
Mood
Type
When to use this quote
- portfolio construction
- stock selection
- cost analysis
- risk management
Key Concepts
Questions to Reflect On
- What cheaper indices could outperform?
- How to assess true value?
Higher prices may reflect higher quality.