#31: Rob Arnott On Engineering A Better Index
Superinvestors and the Art of Worldly Wisdom
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The Raffy Index and the Financial Crisis
When a stock price grows faster than its fundamentals, Raffy automatically rebalance it lower and you sell some. And when a stock performs worse than its fundamentals,. you're actually forcing yourself to buy some. This is the longest period of value struggling against growth, roughly tying the 1988 to 2000 drawdown.
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