Yale's top investor belongs on ER Forums

[saluki9]

Ever notice in good markets, how all the "gurus" are pushing index funds, but in bad markets they say little or nothing?

I push index funds in all markets

 

[saluki9]

To become rich selling a product that by it's very description is the best return you possibly can earn and any losses are unavoidable or even better an opportunity for making even more money (send it in!) is a very admirable feat. I am sure he has been very happy with his investment in his investment company.

The total wealth created by the founders of Dimensional is probably less than one years bonus for the managers of (One) of the large active fund management companies. I suppose you have the same disdain for the recipients of the billions of dollars that investors pay every year in failed attempts to beat the indexes?

 

[FinanceDude]

I push index funds in all markets

Are you a "guru", or a DFA disciple??

 

[ats5g]

The total wealth created by the founders of Dimensional is probably less than one years bonus for the managers of (One) of the large active fund management companies. I suppose you have the same disdain for the recipients of the billions of dollars that investors pay every year in failed attempts to beat the indexes?

c'mon now. someone has got to pay for Ned + Abigail Johnson's planes.

 

[Running_Man]

The total wealth created by the founders of Dimensional is probably less than one years bonus for the managers of (One) of the large active fund management companies. I suppose you have the same disdain for the recipients of the billions of dollars that investors pay every year in failed attempts to beat the indexes?

Yes

 

[FinanceDude]

c'mon now. someone has got to pay for Ned + Abigail Johnson's planes.

I used to think Abigail was hot..

 

[saluki9]

I used to think Abigail was hot..

I'll be very frank with you. I think all women billionaires under 50 are hot

 

[FinanceDude]

I'll be very frank with you. I think all women billionaires under 50 are hot

Another billionaire driving a 7-8 year old car or older:


Luxury Car Reviews, Prices and Advice on ForbesAutos.com

Looks like MBYM to me............

 

[W2R]

Another billionaire driving a 7-8 year old car or older:


Luxury Car Reviews, Prices and Advice on ForbesAutos.com

Looks like MBYM to me............

Interesting! I clicked on the other Forbes 400 bigshots listed to see what cars they drive, as well. Much to my chagrin, NONE of them drive a Toyota Camry, much less a Camry Solara (my car).

A couple of them do drive Toyota Priuses, but most seem to like Mercedez-Benz and BMWs. Who knew? Must be due to keeping up appearances for business reasons. Most luxury cars like those (or like the Jaguar which has such nice body design) seem to spend a lot of time in the shop, and I'm not sure I would want that. I would have thought that they'd be driving Lexuses, Infinitis, Toyotas, or Hondas.

 

[Running_Man]

I suppose you have the same disdain for the recipients of the billions of dollars that investors pay every year in failed attempts to beat the indexes?

I was curious as to what the Top 10 funds in size 1998 and their 10 year return since then. Since this point the managed funds, at least I think the other 9 were managed I really don't follow, outperformed the S&P500 by over 1.3 percent per year. And the S&P500 ranked 8 out of 10 funds. The column that totals to a 6.16 is a dollar weighted average return of all 10 funds so most investors in these actually outperformed the index used at the time for the benchmark of these funds.

Table attached I couldn't get to work in normal view.

 

[Marquette]

Why compare managed funds to the s&p 500? Wouldn't it make more sense to at least compare them to a basket of similarly weighted index funds? I mean, if you're looking at Wellington, it's 60/40 and the 60 is lv weighted. I mean, I've read all over diehards and read Bogleheads Guide and even the prevailing single-index there seems to be a TSM-type rather than an s&p 500.. It's always interesting to see both sides..

 

[Running_Man]

Why compare managed funds to the s&p 500? Wouldn't it make more sense to at least compare them to a basket of similarly weighted index funds? I mean, if you're looking at Wellington, it's 60/40 and the 60 is lv weighted. I mean, I've read all over diehards and read Bogleheads Guide and even the prevailing single-index there seems to be a TSM-type rather than an s&p 500.. It's always interesting to see both sides..

I quoted versus the S&P500 because that was the index of choice back in 1997-1998 and really blazed the trail for other index funds and was where the money actually was. Total Stock market at Vanguard has had a 5.54 10 year return since then. I am trying to compare what people were doing with their investments based on advice at the time as opposed to a back testing of indexing.

Even now the Vanguard S&P500 has 114 billion in assets vs 48 billion for the toal Stock Market (per Morningstar) so more are actually still invested in the S&P500.

 

[Marquette]

I quoted versus the S&P500 because that was the index of choice back in 1997-1998 and really blazed the trail for other index funds and was where the money actually was. Total Stock market at Vanguard has had a 5.54 10 year return since then. I am trying to compare what people were doing with their investments based on advice at the time as opposed to a back testing of indexing.

Even now the Vanguard S&P500 has 114 billion in assets vs 48 billion for the toal Stock Market (per Morningstar) so more are actually still invested in the S&P500.

I see. Fair enough.

 

[megacorp-firee]

Interesting! I clicked on the other Forbes 400 bigshots listed to see what cars they drive, as well. Much to my chagrin, NONE of them drive a Toyota Camry, much less a Camry Solara (my car).

A couple of them do drive Toyota Priuses, but most seem to like Mercedez-Benz and BMWs. Who knew? Must be due to keeping up appearances for business reasons. Most luxury cars like those (or like the Jaguar which has such nice body design) seem to spend a lot of time in the shop, and I'm not sure I would want that. I would have thought that they'd be driving Lexuses, Infinitis, Toyotas, or Hondas.

Or they can AFFORD IT maybe? ... just trying to put this in perspective. Come on people, these guys are paying more in taxes (oh yes they do) than most of us make/made in a year.

 

[W2R]

Or they can AFFORD IT maybe? ... just trying to put this in perspective. Come on people, these guys are paying more in taxes (oh yes they do) than most of us make/made in a year.

Good point. But even if someone can afford a luxury car, why would they want the hassle of having it in the shop all the time?

Maybe they have nothing else to do with their time, or maybe their servants take the car in. They live such a different sort of life from my own.

 

[megacorp-firee]

Good point. But even if someone can afford a luxury car, why would they want the hassle of having it in the shop all the time?

Maybe they have nothing else to do with their time, or maybe their servants take the car in. They live such a different sort of life from my own.

I think that the stereotypical BMmer and Mercedes being in the shop ALL the time is a bit extreme. It could be Jeeves taking it in, but more than likely they drop it off on the way to work and just pick up the complementary loaner. In any case, IMO we on this board display a bit of 'penis envy' (I know I am opening up myself on that one to you ) when it comes to others spending on things we may think wasteful.

 

[W2R]

I think that the stereotypical BMmer and Mercedes being in the shop ALL the time is a bit extreme. It could be Jeeves taking it in, but more than likely they drop it off on the way to work and just pick up the complementary loaner. In any case, IMO we on this board display a bit of 'penis envy' (I know I am opening up myself on that one to you ) when it comes to others spending on things we may think wasteful.

I won't touch THAT one with a ten foot pole. (As in, that's the last thing I would envy? "I enjoy being a girl" as the song goes. )

I had mused about whether or not I wanted a luxury car like that when I got the first distribution from my inheritance recently. But then, I realized that to me, having a working, ordinary car in my driveway is preferable to having a luxury car in the shop, or worse, by the side of the road. But you make a good point - - the psychology of this does affect one's outlook. Even though I don't especially envy their ability to buy a luxury car, maybe I am just not comfortable with spending that much right now.

 

[FinanceDude]

I think that the stereotypical BMmer and Mercedes being in the shop ALL the time is a bit extreme. It could be Jeeves taking it in, but more than likely they drop it off on the way to work and just pick up the complementary loaner. In any case, IMO we on this board display a bit of 'penis envy' (I know I am opening up myself on that one to you ) when it comes to others spending on things we may think wasteful.

This thread is falling fast.................

 

[saluki9]

Good point. But even if someone can afford a luxury car, why would they want the hassle of having it in the shop all the time?

Maybe they have nothing else to do with their time, or maybe their servants take the car in. They live such a different sort of life from my own.

What makes you think that luxury cars are in the shop more than non luxury brands?

My purely anecdotal experience has shown my BMW to be just as (if not more) reliable than my wife's Honda. My extended family owns a fleet of BMWs and MBs without any major trouble among them.

 

[haha]

That's not what he was saying..........he's saying he has tools that most of us can only dream about, and unheard access to fund managers and equity analysts.

Tools have their appeal, but the most important tool is between your ears. Warren Buffet claims he doesn't even use spreadsheets. He may even claim he doesn't use computers.

Ha

 

[FinanceDude]

Tools have their appeal, but the most important tool is between your ears. Warren Buffet claims he doesn't even use spreadsheets. He may even claim he doesn't use computers.
Ha

True, but how many Warren Buffets are out there? I know only one........O0

 

[saluki9]

True, but how many Warren Buffets are out there? I know only one........O0

There is only one. But if I had to nominate a successor David Swenson would be at the top of my list.

 

[megacorp-firee]

What makes you think that luxury cars are in the shop more than non luxury brands?

My purely anecdotal experience has shown my BMW to be just as (if not more) reliable than my wife's Honda. My extended family owns a fleet of BMWs and MBs without any major trouble among them.

Have you found that the cost of maintenance for the BMmer is much more than the Honda?

 

[saluki9]

Have you found that the cost of maintenance for the BMmer is much more than the Honda?

Wouldn't know because BMW pays for all maintenance until 50K miles

I'm sure if I drove it to 100K which I probably am not that it would be more. But, the joy of driving has a price and I'm willing to pay it.

 

[mickeyd]

Besides, I believe that fund managers effectively direct the markets,

Which fund manager(s) are going to beat the index funds over the next 20 years? I'm curious to know so that I can consider moving all of my Vanguard index fund investments to the funds that he (they?) manage.