David Swensen gave us an insight into what he would say in a recent article in The New York Times. He has little confidence in the mutual fund industry, noting that it “…has employed market volatility to produce profits for itself far more reliably than it has produced returns for its investors.” He has less regard for brokers and advisers, noting that: “Most understand too little about financial marketsto make informed decisions, intervene too frequently in counterproductive ways and gather too little information about portfolio holdings to evaluate results.”He advises individual investors “…to embrace low-cost index funds and shun the broker-driven churning of high-cost, actively managed funds.”
Every minute you spend trying to beat the market is time wasted as well as money wasted. Your time should be spent on your most valuable asset, your career. If you are retired your time would be better spent helping others.
Please comment or call to discuss.
- Why the SEC shouldn’t push index funds (blogs.reuters.com)
- Is It Time to Rethink Your Mutual Fund Picks? (money.usnews.com)
- The Mutual Fund Industry Is A Huge Scam That Costs Investors Billions Of Dollars A Year (businessinsider.com)