Probably way more than three ways personal financial advisors can mislead clients. But the article I want to link mentions three, so we will start there.
I agree with two of the three, but you can come to your own conclusions.
Okay, so what are these evil secrets financial advisors use to hurt clients? (more…)
In “Want to Invest Like a Pro?” we looked at attributes of successful professional investors.
I definitely believe one can learn a lot by watching how the pros invest. Nevertheless, I stated that following the professionals was “maybe a good plan, maybe not.”
This example nicely sums up that statement. (more…)
Want to learn how to invest like a professional investor?
Maybe a good plan, maybe not. But our friends at Investopedia discuss how to “Invest Like a Pro”.
Article highlights and my comments below: (more…)
Day trading in financial markets is not something I like to see in clients.
I prefer having clients take a long-term investing perspective, utilizing passive management strategies. Day trading – also known as stock flipping or high frequency trading – is the polar opposite to this. Active management to the nth degree.
Successfully flipping stocks, bonds, and other asset classes is a tricky business. One that requires expertise, adequate time to research and continually monitor your portfolio, and nerves of steel in volatile markets. A closet full of Milk of Magnesia might not hurt either.
That said, many individuals want to learn about day trading. A look at this topic today. (more…)
In the U.S., the Standard & Poor’s 500 stock index (S&P 500) is up 12.6% year to date 2012.
That is the good news. The bad?
Your mutual fund is likely not meeting or exceeding this benchmark.
Why the underperformance against investment benchmarks? (more…)
I mentioned Benjamin Graham in “Mistakes of Warren Buffett” and recommended his book, “The Intelligent Investor”.
Benjamin Graham mentored Warren Buffet and is considered the founder of value investing.
Today, a quick summary on Benjamin Graham and his three key principles for value investing. While they may not turn you into the next Warren Buffett, these investment tips will make you a better investor. (more…)
Is the buy and hold investment strategy dead?
I have argued no in previous posts. There are many advantages for investors who utilize a buy and hold approach.
A short video from Vanguard nicely summarizes my position. (more…)
Each year seems to bring an ever increasing number of new exchange traded funds (ETFs).
2011 was no exception.
Some say many of the new ETFs are not necessary, but I like the increase. (more…)
I am a proponent of passive investing.
That means investing in passively managed index funds that track a specific market sector. Primarily, exchange traded (ETF) or open ended mutual index funds.
Research indicates that actively managed portfolios tend not to perform better than passive portfolios. And actively run portfolios cost investors more money in fees and expenses than passive.
So why take an active approach? (more…)
For most individual investors, I believe that a passively managed, well diversified investment portfolio is the best approach for long term success.
I do not believe that paying higher fees for active management brings superior results over the long run. Instead, minimize investment costs and stick to index funds for the majority of investments. Let portfolio returns compound in your investment account, not in the pocket of an investment advisor or financial institution.
I have written extensively as to why I believe in this strategy.
Today, a little more evidence that a passive approach outperforms an active one. (more…)
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