5 Investing Myths

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
jaj2276
Posts: 353
Joined: Sat Apr 16, 2011 5:13 pm

5 Investing Myths

Post by jaj2276 » Tue Jun 02, 2015 2:00 pm

I thought this article was quite interesting: http://streettalklive.com/index.php/dai ... myths.html. I don't know who he is or what he's trying to sell, but I especially liked how he summed up beating/outperforming the stock market.
... If you tell a client that they made 12% on their account, they are very pleased. If you subsequently inform them that 'everyone else' made 14%, you have made them upset. The whole financial services industry, as it is constructed now, is predicated on making people upset so they will move their money around in a frenzy. Money in motion creates fees and commissions. The creation of more and more benchmarks and style boxes is nothing more than the creation of more things to COMPARE to, allowing clients to stay in a perpetual state of outrage.

Gropes & Ray
Posts: 1067
Joined: Wed Jul 16, 2014 7:28 am

Re: 5 Investing Myths

Post by Gropes & Ray » Tue Jun 02, 2015 2:23 pm

He says some reasonable things, but concludes with several active manager talking points, including the importance of capital preservation and the futility of "chasing the index." He isn't necessarily wrong, but I bet if you call him he wouldn't recommend a simple portfolio of low cost index funds.

asif408
Posts: 1427
Joined: Sun Mar 02, 2014 8:34 am
Location: Florida

Re: 5 Investing Myths

Post by asif408 » Tue Jun 02, 2015 2:36 pm

Gropes & Ray wrote:He says some reasonable things, but concludes with several active manager talking points, including the importance of capital preservation and the futility of "chasing the index."
+1. He says:

"There are no great investors of our time that "buy and hold" investments.....Real investors buy when they see value and sell when value no longer exists".

I would say there are no terrible investors of our time that "buy and hold" investments either. If you deviate significantly from the index you increase the chance of being great and being terrible.

User avatar
nedsaid
Posts: 10233
Joined: Fri Nov 23, 2012 12:33 pm

Re: 5 Investing Myths

Post by nedsaid » Tue Jun 02, 2015 2:42 pm

It appears to me that he is selling some type of market timing newsletter.
A fool and his money are good for business.

chaz
Posts: 13601
Joined: Tue Feb 27, 2007 2:44 pm

Re: 5 Investing Myths

Post by chaz » Tue Jun 02, 2015 2:55 pm

I like the Balanced Index Fund.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

User avatar
DaftInvestor
Posts: 4019
Joined: Wed Feb 19, 2014 10:11 am

Re: 5 Investing Myths

Post by DaftInvestor » Tue Jun 02, 2015 3:44 pm

jaj2276 wrote:I don't know who he is or what he's trying to sell.....
He's trying to steer clients to his company:
http://stawealth.com/index.php

This article is his way of saying "Now that you know how smart I am - take a look at the name of my company - give us a call - we'll set you up and take 1% of whatever you have." :D

DVMResident
Posts: 1254
Joined: Mon Aug 01, 2011 8:15 pm

Re: 5 Investing Myths

Post by DVMResident » Tue Jun 02, 2015 4:40 pm

asif408 wrote:
Gropes & Ray wrote:He says some reasonable things, but concludes with several active manager talking points, including the importance of capital preservation and the futility of "chasing the index."
+1. He says:

"There are no great investors of our time that "buy and hold" investments.....Real investors buy when they see value and sell when value no longer exists".
"Our favorite holding period is forever." - Warren Buffett

Post Reply