"Passive Investing Pays Off---Again"

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"Passive Investing Pays Off---Again"

Postby Taylor Larimore » Thu Feb 14, 2013 4:36 pm

Bogleheads:

"Passive Investing Pays Off---Again." This is a headline in the March issue of Consumer Reports Money Adviser.

From the first paragraph:
These are difficult times for active fund managers. Despite a 16 percent return for stocks in 2012, three of every five active fund managers were unable to keep up with the market for the third consecutive year. -- Vanguard, the godfather of low-cost passive fund investing, recently thanked investors for pushing it above $2 trillion in assets.

From the last paragraph:
If you're an index investor, some smugness might be warrented. But if you hold actively managed funds, now might be a good time to look at their expense ratios and performance to see if they're worth the cost. If not, you're probably better off moving your money to comparable low-cost ETF's or index funds.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: "Passive Investing Pays Off---Again"

Postby jvclark02 » Thu Feb 14, 2013 5:10 pm

You can lead a horse to water but you can't make him drink :oops:
Experience is something you gain shortly after you really needed it.
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Re: "Passive Investing Pays Off---Again"

Postby Village Idiot » Fri Feb 15, 2013 8:41 am

jvclark02 wrote:You can lead a horse to water but you can't make him drink :oops:


or you can turn him into hamburger meat and sever him at burger king.
"The clairvoyant society of London will not meet on Tuesday due to unforeseen circumstances"
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Re: "Passive Investing Pays Off---Again"

Postby 272 Sheep » Fri Feb 15, 2013 9:51 am

Hi Taylor,
You might find it interesting in the same article.
The Feb. Consumer Reports article was about "7 Investing stumbles". Stumble #3 -Stated that you should not pay yearly expenses of more than $20 per $1,000 or 0.20% for an Index Fund.
I'm sure they meant to say $20/$10,000. I contacted them about it and they responded, acknowledging the error and that they will print a correction in some future monthly edition.

Ironic, that an article written about financial blunders they make a big (understandable) one right in the middle of it.
Goes to show you that almost anyone can make financial errors including the respected Consumer Reports.

Best regards,
Carl W.
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Re: "Passive Investing Pays Off---Again"

Postby 272 Sheep » Fri Feb 15, 2013 3:33 pm

Oops, different article. I'll have to look up the March issue.

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