quote:

Originally posted by jhe888:

quote:

Originally posted by Rey HRH:

So I willingly pay someone 1% to do the investment decisions for me.

Some Vanguard and Schwab index funds charge less than 1% for their fees.

Vanguard's fee is .04% in it's VFIAX S&P 500 index fund. So a money manager would have to beat the S&P 500 index consistently by 1 percent just to be even with that. Something like less than 5 percent of mutual fund managers have beat the S&P 500 index over the long term and when they do it almost always is just by a little bit.

quote:

Originally posted by grumpy1:


Vanguard's fee is .04% in it's VFIAX S&P 500 index fund. So a money manager would have to beat the S&P 500 index consistently by 1 percent just to be even with that. Something like less than 5 percent of mutual fund managers have beat the S&P 500 index over the long term and when they do it almost always is just by a little bit.

Exactly my point. The fees are miniscule compared to a managed fund, and the professional managers can't beat the index fund year in and year out. If they make 7% one year, they lose 3% the next. And charge 3% each year for the privilege. As you say, only a very few can beat the market over any kind of longer term.

But they keep selling people their worthless services for 3%, 4% and sometimes even more.

And they help convince people that they themselves can beat the market.

This message has been edited. Last edited by: jhe888,

Past performance is not an indicator of future results.

I din't see why people use "beat the market" as the bench mark. Until fairly recently, it was impossible to invest in "the market."

Why not invest in companies which are doing good business, at a fair price and the market do as it pleases?

It's not race.

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Originally posted by JALLEN:


Why not invest in companies which are doing good business, at a fair price and the market do as it pleases?

Along those lines, I've got a close eye on GE. They say it's tied to oil prices. May not be a bad thing. The value investor side of me is telling me I need to go for it.

Warren Buffet just sold ALL his GE stock. But hey maybe you know something he does not??

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Originally posted by grumpy1:
Warren Buffet just sold ALL his GE stock. But hey maybe you know something he does not??

But he sold the shares 3 months ago, when the shares were higher, and before it hit bottom. Smart move.

The news just hit the streets this week because it came from a regulatory filing which was filed 3 months ago.

From one of the news sites... (that I won't post a link to because, well, it's CNN and they suck)

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The timing of the sale was pretty solid. Those 10.6 million shares would have been worth $46 million less today than three months ago.

Performance relative to the market is a useful benchmark, even if not the ne plus ultra of success.

Had you bought GE in 2000 you could sell today and get about half your money back.

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Originally posted by doublesharp:
Had you bought GE in 2000 you could sell today and get about half your money back.

Yup, the 2000 bubble burst. I think there are a lot of stocks in that same boat.

quote:

Originally posted by grumpy1:

quote:

Originally posted by jhe888:

quote:

Originally posted by Rey HRH:

So I willingly pay someone 1% to do the investment decisions for me.

Some Vanguard and Schwab index funds charge less than 1% for their fees.

Vanguard's fee is .04% in it's VFIAX S&P 500 index fund. So a money manager would have to beat the S&P 500 index consistently by 1 percent just to be even with that. Something like less than 5 percent of mutual fund managers have beat the S&P 500 index over the long term and when they do it almost always is just by a little bit.

I'm not saying the path I chose is for every one. I can do my own mix strategy between stocks and bonds. I can chose mutual funds or individual stocks to capture various market sectors and underweight or overweight versus leading indicators.

I wanted someone who would do what I would do and do it in a disciplined way. I'm not trying to beat the market, my concern at this point is being able to act defensively and decisively should the time come. I chose a company who has the inclination to do it and who is motivated by making me money instead of just churning my portfolio.

Or are we only suppose to consult a professional in the field when it comes to law and we should try to do it ourselves when it comes to everything else?

REH, I think the point is you could do the things this company is charging you for and at least as good, maybe better when all said and done. But you seem to get a piece of mind that these folks have your best interest in mind at that it is all going to work out. I hope it does. There are no guarantee's for any of us. No matter how we choose to go about it. That is the one thing we know for sure about this topic. Fwiw, I tend to agree with jhe888.

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I wanted someone who would do what I would do and do it in a disciplined way. I'm not trying to beat the market, my concern at this point is being able to act defensively and decisively should the time come. I chose a company who has the inclination to do it and who is motivated by making me money instead of just churning my portfolio.

Zacks can provide this type of service. Or you could invest in stocks they recommend.

The objective is to find the strong sector and then find the best stock or stocks in the sector.

Warren Buffet has consistently recommended low cost index funds for investors, and instructs the trustee for his estate to do just that for his wife.

With respect to experienced financial advisors: “When a person with money meets a person with experience, the one with experience ends up with the money and the one with money leaves with experience.”

2016 Letter to Shareholders

I did not know Warren Buffet had remarried. I knew his wife was deceased. His private life seems equally interesting and surprising. Here is the story:

:
Warren Buffett has been married twice. Buffett married his first wife, Susan, in 1952. They had three children and were married for over 50 years, until Susan's death in 2004.

Although Warren and Susan had a long-lasting marriage, they were not together for all of it. They separated halfway through the marriage, in 1977, with Susan moving to San Francisco. Nevertheless, the two remained close, frequently talking on the phone even though they were apart.

Buffett's first wife had something to do with the business leader's next partner. Before her death, Susan introduced Warren to a waitress named Astrid Menks. Susan had asked Menks to check up on Warren while she was away. It was Menks who would later end up being Warren's companion and future wife. By 1978, Buffett and Menks were living together, and cards from the Buffet family were being sent out signed, "Warren, Susie and Astrid." Although Menks did not become Buffett's wife until after his first wife's death.

In 2006 Warren Buffett and Astrid Menks officially got married. The Berkshire Hathaway CEO held a low-key ceremony at his daughter Susie's home in Omaha, Nebraska. No business leaders were present, and neither were Buffett's two sons.

Although some may question the love triangle, friends remarked that the relationship among the three was sophisticated, and Susan was quoted with only good things to say about Menks.

"She takes great care of him, and he appreciates it and I appreciate it. She’s a wonderful person," Buffett's first wife said in an interview with Charlie Rose. According to Warren, "Susie put me together, and Astrid keeps me together."

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Susie put me together, and Astrid keeps me together."

Any way...Buffet has lots of connections with bankers so that makes it easy at times.


Select Funds always beat the market. Here is Fidelity Technology:

http://bigcharts.marketwatch.c...oggle=false&state=15

Fidelity Select Semiconductor:

http://bigcharts.marketwatch.c...oggle=false&state=15

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Investment question. In light of the political climate.

Guns, ammo, alcohol

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Originally posted by tanksoldier:

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Investment question. In light of the political climate.

Guns, ammo, alcohol

Gold, Bitcoin, cigarettes.

Forget investment advice. Do what Winston Churchill did with his money. He was great at handling the Blitz, but not his bills. Very interesting story of his problems with money and how he handled it. A good read for Churchill fans. Here is the link:

https://www.theatlantic.com/ma...d-with-money/419094/

quote:

Originally posted by grumpy1:

quote:

Originally posted by jhe888:

quote:

Originally posted by Rey HRH:

So I willingly pay someone 1% to do the investment decisions for me.

Some Vanguard and Schwab index funds charge less than 1% for their fees.

Vanguard's fee is .04% in it's VFIAX S&P 500 index fund. So a money manager would have to beat the S&P 500 index consistently by 1 percent just to be even with that. Something like less than 5 percent of mutual fund managers have beat the S&P 500 index over the long term and when they do it almost always is just by a little bit.

I must have gotten lucky with my managed account.I went here to see that funds performance https://personal.vanguard.com/...=0540&FundIntExt=INT

The hypothetical shows 10 years to double your 10k.My managed account took 9yrs to increase 2.5x.I am like Rey HRH and am willing to pay someone to take care of it for me.

quote:

Originally posted by triggertreat:

quote:

Originally posted by grumpy1:

quote:

Originally posted by jhe888:

quote:

Originally posted by Rey HRH:

So I willingly pay someone 1% to do the investment decisions for me.

Some Vanguard and Schwab index funds charge less than 1% for their fees.

Vanguard's fee is .04% in it's VFIAX S&P 500 index fund. So a money manager would have to beat the S&P 500 index consistently by 1 percent just to be even with that. Something like less than 5 percent of mutual fund managers have beat the S&P 500 index over the long term and when they do it almost always is just by a little bit.

I must have gotten lucky with my managed account.I went here to see that funds performance https://personal.vanguard.com/...=0540&FundIntExt=INT

The hypothetical shows 10 years to double your 10k.My managed account took 9yrs to increase 2.5x.I am like Rey HRH and am willing to pay someone to take care of it for me.

!0 year return for S&P 500 index includes the last huge stock market crash making it historically very low and while 9 years would not or not nearly as much so you are not comparing apples to apples. Also you have to take into account if you added any funds to your account in the last 9 years or not. 10 years is a relatively short period of time for long term investors. If one look at 20 and 30 year returns it has done much better and very very few have been able to match or beat it. The one Vanguard fund that probably has beaten the S&P 500 over the longer term and one of the highest returning funds over the long term ever is the Vanguard Health fund - VGHCX. Vanguard Primecap - VPMCX is another that may have and one of my favorite funds that I have done extremely well with over the years.