Wall Street WARZONE
‘Super-Brain’ Portfolios for Bulls & Bears: 8 Passive Portfolios of No-Load Index Funds Regularly Beating the S&P 500
by Paul B Farrell, JD, PhD
| Discuss | | 4/21/2010

Want to see inside the mind of a “SuperBrain Investor?” What makes a winner? Simple. Here’s how the legendary money manager Peter Lynch put it in his classic, One Up On Wall Street: “Think like an amateur. If you invest like an institution, you’re doomed to perform like one, which in most cases isn’t very well. If you’re a surfer, a truck driver, a high school dropout, or an eccentric retiree, then you’ve got an edge already.” Get it? The “SuperBrain Investor” thinks like an amateur.

Okay all you crafty irrational investors—here are some of the best of the “Super-Brain Portfolios” from my Lazy Person’s Guide to Investing, the best ones since first introducing them way back in 2002, now being updated daily on DowJones MarketWatch.com. And yes: They’re still as dull and boring and lazy as back then—and the best are still beating the S&P 500 in bull and bear markets, with no timing and no trading!

And guess who’s most interested in the lazy portfolios! A survey of our email responses tells us that although we initially thought these simple portfolios were mainly for passive do-it-yourself Main Street investors, as time passed we’ve discovered that this strategy is actually used by three different kinds of investors, many of whom are Wall Street insiders: First. Passive investors: the vast majority of America’s 95 million investors. Second. Wealth managers & financial advisors for high-net worth individuals. And third. Financial industry pros protecting their own family’s retirement assets. (More)