Monday, November 26, 2007

Wikipedia quote to make you rich

Here's the quote

"Many index funds and exchange-traded funds track the performance of the S&P 500 by holding the same stocks as the index, in the same proportions, and thus attempting to match its performance (before fees and expenses). Partly because of this, a company which has its stock added to the list may see a boost in its stock price as the managers of the mutual funds must purchase that company's stock in order to match the funds' composition to that of the S&P 500 index."

So, if you could just predict which stocks are going to get into the S&P500, you would have great stock picking success and of course make millions, retire early, buy a boat , and say things like, "It's important to take risks" whenever some young person comes to say hi.

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