Investing

Performance of money managers are inferior to passive investment strategies

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  • Oct 31st, 2014 8:27 am
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Deal Fanatic
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Dec 14, 2010
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ELiTE KiLLaH wrote: Seems the best thing to do is the opposite of the masses (in certain cases lol).

Bear market: most ppl panic and sell and take their money out of the market, either running with their profits or more likely running with losses. U should buy here cuz stuff is cheaper.

Bull market: ppl are getting crazy cuz the market is going up so they buy in now, when u should be doing little or nothing and riding the wave? Lol
Yes, it's just hard to implement. When you see your investments down 30% or 50%.... It's too easy to be emotional and think that they might go down 80% (how many times 1929 was quoted in 2008 crash?), so they sell. If you can ignore the media and the friends and the family and buy more (as a rational decision because most stocks are likely trading below its intrinsic value), then you developed the intestinal fortitude required for this!

Rod
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Mar 24, 2008
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Toronto
I personally have never sold anything in the last 10 years or so. Why sell when you have the money to buy more? Market gyrations don't bother me.
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Jul 23, 2007
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John Bogle on why your retirement plan stinks

How important are fees to your retirement plan's success? As Vanguard founder John Bogle pointed out in a recent discussion with analysts, it's really all that matters.

Fees easily wipe out a huge portion of the yield on stocks, he said, more than 63% for your money.
Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
Stryker wrote: John Bogle on why your retirement plan stinks

How important are fees to your retirement plan's success? As Vanguard founder John Bogle pointed out in a recent discussion with analysts, it's really all that matters.

Fees easily wipe out a huge portion of the yield on stocks, he said, more than 63% for your money.
Fees, market timing, overconfidence and other biases that all of us suffer from are some things to watch out for. For my portfolio, I pay 0.087% in MER and buying ETFs is free with Questrade. I don't ever sell but just add to my positions quarterly.

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