A Hedge Fund Group Accepted Warren Buffett’s Index Fund Challenge. It Did Not Go Well for Them.
August 31st, 2017
In 2008, Warren Buffett bet the hedge fund industry they could not beat a typical S&P index fund over a decade. One group was brave enough to take on that challenge. After nine years, the results are becoming clear, according to an article on cnbc.com. It’s officially a rout: The portfolio of hedge fund isRead Entire Article…
The Real Cost of Paying More Than You Have To
August 17th, 2017
Last year, investors in the United States paid, on average, the lowest mutual fund fees ever, according to Morningstar. But as a recent article in the New York Times details, investment costs are full of unpleasant surprises, and academic studies have found that many people aren’t taking advantage of better-priced alternatives. “The costs for gettingRead Entire Article…
The Closest Thing to a “Secret Sauce” for Achieving Superior Investment Returns
July 12th, 2017
Investors usually judge an investment by whether it beats the overall stock market’s return. And they’re willing to pay money managers handsomely for the opportunity. How’s that working out for them? According to a recent article on marketwatch.com, not so well. “More than 90% of large-cap funds lag the S&P 500 Index over a 15-yearRead Entire Article…
Is the Stock Market Really as Volatile as You Think?
June 27th, 2017
Investors are used to hearing how the stock market is a roller coaster, which makes it seem like it’s had as many down years as up years. But that’s not really accurate. CNBC recently related a different take on the S&P 500’s annual return performance. And it may surprise investors who think the stock marketRead Entire Article…
A Better Way to Judge “Long Term” Performance
June 23rd, 2017
For investors, it’s natural to look at an investment’s performance over time to gauge how successful it’s been. But how long a time period should they consider? Many investors don’t take into account the complete cycle of a bull and bear market — instead, they rely on standard industry measures like one-, three- and five-yearRead Entire Article…
The Nuts And Bolts of Robo Advisors: What They Are, How They Work & When You Might Want to Use One
April 5th, 2017
All robo advisors have things in common, but not all are created equal. What is a “Robo-Advisor,” Exactly? As its name suggests, a “robo advisor” is an automated system that attempts to do what personal advisors do: manage your assets according to your goals, time horizon and tolerance for risk. Robo advisors generally have threeRead Entire Article…
Why Combining Active and Passive Investing is the “Best Possible Approach”
March 30th, 2017
It’s an argument that has raged for decades among investors — which delivers better long-term returns: active investing by asset managers or passive investing through index funds? A recently completed, comprehensive statistical analysis attempted to settle that argument, and found the answer was: BOTH! “Quantitative models indicate that combined active and passive investing outperformed all-activeRead Entire Article…
Why Long Term Investors Should Invest Now and Never Time the Markets
February 15th, 2017
Losing money hurts. But experienced, long term investors know that periods of high volatility are inevitable. It’s part of the investing process. You can’t control their length or severity, but you CAN control how you respond. The temptation is to exit the market entirely. Unfortunately, that’s the WORST thing you can do. Why? Because noRead Entire Article…