video- How Dave Ramsey's Mutual Funds Have Performed Since 1973

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mesaverde
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video- How Dave Ramsey's Mutual Funds Have Performed Since 1973

Post by mesaverde » Sat Jan 13, 2018 6:18 pm

This was a recent broadcast on the most popular personal finance radio talk show:
https://www.youtube.com/watch?v=swKB0dFlxa8

Ramsey refers to an analysis that his network of mutual fund salespeople conducted on the number of mutual funds that outperformed the S&P 500.
In this analysis he fails to include the (thousands?) of mutual funds that no longer exist.
Unfortunately many people follow the flawed investing advice that Ramsey continues to give.
It's unfortunate because much of the other advice he gives is spot on.
"Learn from the past, live in the present, plan for the future"

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whodidntante
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Re: video- How Dave Ramsey's Mutual Funds Have Performed Since 1973

Post by whodidntante » Sat Jan 13, 2018 6:28 pm

Follow the money.
We can't have smartvestor® pros recommending low cost passive investments, because there will be no sales charge, 12b-1, or backend load that we can share. Therefore, "good growth stock mutual funds" are better.

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badbreath
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Re: video- How Dave Ramsey's Mutual Funds Have Performed Since 1973

Post by badbreath » Sat Jan 13, 2018 7:36 pm

Dave forgets or does not want to subtract fees and loads. Yes many do when you don't include that
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

LateStarter1975
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Re: video- How Dave Ramsey's Mutual Funds Have Performed Since 1973

Post by LateStarter1975 » Sat Jan 13, 2018 8:43 pm

I listened to this Dave's rant and I found it very convenient that all his funds in his 401K according to him, beat the S&P index and other indexes over the last 10, 20, 30 and 40 years. I wonder where the catch is....
Debt is dangerous...simple is beautiful

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nisiprius
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Re: video- How Dave Ramsey's Mutual Funds Have Performed Since 1973

Post by nisiprius » Sat Jan 13, 2018 8:52 pm

LateStarter1975 wrote:
Sat Jan 13, 2018 8:43 pm
I listened to this Dave's rant and I found it very convenient that all his funds in his 401K according to him, beat the S&P index and other indexes over the last 10, 20, 30 and 40 years. I wonder where the catch is....
I'm not going to listen to the rant, but this is common in 401(k) plans; it might be the rule rather than the exception. The plan constantly boots out the funds with low Morningstar star ratings and replaces them with four- and five-star funds, so at any given point in time the plan contains almost entirely high-performing funds. High-past-performing funds.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

deltaneutral83
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Re: video- How Dave Ramsey's Mutual Funds Have Performed Since 1973

Post by deltaneutral83 » Sat Jan 13, 2018 9:47 pm

His funds have been smoked at NAV the last ten years against their benchmarks, with a load of any kind, it only gets worse. If you pay one of his guys an AUM on top, it's probably highway robbery, but I don't think many of his guys are AUM, just the AF front end load plus 25bps of the ER is 12b-1. I'm sure he is up over 20/30+ years, but that doesn't take into account taxes (if you held in a taxable, which I do not think Dave does) or the fact that he is tilted to Small caps which have obviously done better than Large the past 30/40 years so the S&P is no barometer for his portfolio, nor is the International.

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