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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.” quote by James O'Shaughnessy
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“If you're indexing to the S&P 500, you're buying the most expensive names in the market.”

James O'Shaughnessy

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.

Key Takeaway

Consider cheaper alternatives.

Themes

investment stock market valuation

Mood

analytical strategic

Type

financial investing

When to use this quote

  • portfolio construction
  • stock selection
  • cost analysis
  • risk management

Key Concepts

Market efficiency price premium

Questions to Reflect On

  • What cheaper indices could outperform?
  • How to assess true value?
A Different Perspective

Higher prices may reflect higher quality.

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