Valuation-Informed Indexing #581: Benjamin Graham Was Skeptical of One Aspect of Valuation-Informed Indedxing

I’ve posted entry #581 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Benjamin Graham Was Skeptical of One Aspect of Valuation-Informed Indexing.

Juicy Excerpt: Graham, however, doubted that the majority of investors could ever find appeal in the strategy. He said: “These copybook maxims have always been easy to enunciate and difficult to follow — because they go against that very human nature which produces the excesses of bull and bear markets. It is almost a contradiction in terms to suggest as a feasible policy for the average stock owner that he lighten his holdings when the market advances beyond a certain point and add to them after a corresponding decline. It is because the average man operates, and apparently must operate, in opposite fashion that we have had the great advances and collapses of the past; and — this writer believes — we are likely to have them in the future.”