Foreword:
Investing is all about common sense. Owning a diversified portfolio of stocks and holding it for the long term is a winner's game. Trying to beat the stock market is theoretically a zero-sum game (for every winner, there must be a loser), and after the substantial costs of investing are deducted, it becomes a loser's game.
Common sense tells us, and history confirms, that the simplest and most efficient investment strategy is to buy and hold all of the nation's publicly held businesses at very low cost. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair share of stock market returns.
Quotes:
"Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees." Warren Buffett
"A low-cost index fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth." Warren Buffett
Beating the market is loser's game and yet many fund managers are trying to have us believe that they can out perform the market.
ReplyDeleteThey never learn or they are trying to con us and indeed many gullible ones got conned through the greedy insurance agents who masquerade as financial consultants.
Never , never trust the agents , they are salesmen and women who want to earn a commission out of you. The fund managers use them because they will do anything as long there is money, even to con their relatives and friends.So, please don't trust your agents they are nothing but a salesman.
CPF is littered with losers.That is why many don't have $40K to buy the CPFLife.
Anyway, there are are also smart aleks customers who think they know investment by buying and selling at the right time.They actively manage their investment by switching here and there until stunted. If these consumers are so clever they should buy direct from online portals without paying commission to insurance agents who also don't know how to manage.
ReplyDelete