Numbers-Based Planning

2) The second tenet of Valuation-Informed Indexing is that planning must be at least partly numbers-based.

Numbers help us separate fact from fiction. Too many people force their own solutions on others instead of looking for possibilities. Sometimes, their solutions are helpful. Sometimes, not.

By looking at the numbers, we learn a lot.

Here is a letter from a diligent provider unfamiliar with investing. This Novice Investor has done exceptionally well. Analysis shows that this Novice Investor does not need to take-on any risk whatsoever. This Novice Investor can be picky, accepting only measured levels of risk and only when conditions are most favorable.

From A Novice in Investing

Have fun.

John Walter Russell
November 8, 2005