OP
OP
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- Sep 10, 2006
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Interesting! I guess if it were predictable it could be controlled. Oh, if only we could control it.
expense ratio costs included in "total return"?
- Thread starter simple girl
- Start date
Interesting! I guess if it were predictable it could be controlled. Oh, if only we could control it.
Interesting! I guess if it were predictable it could be controlled. Oh, if only we could control it.
Like the hedge fund company I quoted above very clever people come up with formulae, theories, neural network models etc to try and beat the market and invariably they eventually fail.
There are 3 things you can try and do with the market:
1. Ignore it (stick with CD's, cash etc)
2. Beat it
3. Be it
I ignored it up 'til 14 years ago, relying on a secure pension for retirement. But after I had joined my 4th company since graduating college and was starting on my 4th pension I decided I needed something else. After some reading, some experimenting with money in taxable funds, and a night class at the local university I decided that I wanted to "Be" the market and for the last 10 years have been mostly in index funds to create an AA that matches my risk level.
Well, I don't let Expenses be the only factor for my Funds.. I've had some very nice funds way out perform comparable Cheap Index Funds and paid 1-1.5% Expenses and still come out way on top..
In otherwords? "Don't be a Penny Wise, Dollar Foolish"
and to make matters more complex? I have another account with a Investment Firm that manages a Port and charges another .75% on it.. But, it also has more than paid for itself in both management of the accounts investments and providing many other services..
So, I guess it just All depends on what your looking to do..If one wants too and is Good at managing their own, etc.. More power to you..use the indexes or lower cost funds that fit your needs..
I also Go to the actual Funds Website for More accurate #'s as well as use Lipper's and 1 other ..besides M*..and don't use their Star * rating to buy or not either..
In otherwords? "Don't be a Penny Wise, Dollar Foolish"
and to make matters more complex? I have another account with a Investment Firm that manages a Port and charges another .75% on it.. But, it also has more than paid for itself in both management of the accounts investments and providing many other services..
So, I guess it just All depends on what your looking to do..If one wants too and is Good at managing their own, etc.. More power to you..use the indexes or lower cost funds that fit your needs..
I also Go to the actual Funds Website for More accurate #'s as well as use Lipper's and 1 other ..besides M*..and don't use their Star * rating to buy or not either..
harley
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
In my early years of learning about investing I spent a lot of time lurking and occasionally contributing to TMF Market Screens discussion group. I was really into due to my analytical tendencies, but couldn't ever lock into anything solidly. They just seemed to be Too Good To Be True. And they were.
Sometimes I think that the Bogle Indexing theory is just another market screen theory. Other (most) times I feel like it's the opposite of one. No matter which, I feel very comfortable with it. Mostly due to the goal - Invest diversely, at low cost, and be satisfied with the market returns. This isn't an attempt to blow everyone else away, it's an attempt to do as well as most without sweating the details too much. As we've seen, matching the market can suck sometimes. But I still think in the longer run it's the best way for me to go. And as someone famous once said, of all the market factors out there, the only one we can control are the costs.
Sometimes I think that the Bogle Indexing theory is just another market screen theory. Other (most) times I feel like it's the opposite of one. No matter which, I feel very comfortable with it. Mostly due to the goal - Invest diversely, at low cost, and be satisfied with the market returns. This isn't an attempt to blow everyone else away, it's an attempt to do as well as most without sweating the details too much. As we've seen, matching the market can suck sometimes. But I still think in the longer run it's the best way for me to go. And as someone famous once said, of all the market factors out there, the only one we can control are the costs.
