1/ Simba: "Why isn't the 'sit on you ass' investing style not more popular?"
Mufasa: "Because it is hard for anyone to earn management fees on a portfolio of less then ten stocks that rarely changes. As I said before, if you show me the incentives, I will show you the outcome.
Mufasa: "Because it is hard for anyone to earn management fees on a portfolio of less then ten stocks that rarely changes. As I said before, if you show me the incentives, I will show you the outcome.
2/ Simba: "Is sit on your ass investing the only way to invest successfully?
Mufasa: "No. My standard prescription for the know-nothing investor with a long-term time horizon is a low fee index fund. Less than 10% of stock market investors can beat an index after fees."
Mufasa: "No. My standard prescription for the know-nothing investor with a long-term time horizon is a low fee index fund. Less than 10% of stock market investors can beat an index after fees."
3/ Simba: "Index fund investors seem to have more free time to do things like going on hikes and playing golf."
Mufasa: "Of course they do. But they are not earning investment management fees while they are playing golf, like active managers that closet index their portfolios.
Mufasa: "Of course they do. But they are not earning investment management fees while they are playing golf, like active managers that closet index their portfolios.
4/ Simba:"I've been reading Robin Wigglesworth's new book Zillions about index funds. Why don't even more people use them?
Mufasa: "Even if people know 90% of investors can't beat an index after fees, everyone looks around and says, 'I'm in the 10%.'” amazon.com/gp/aw/d/059308…
Mufasa: "Even if people know 90% of investors can't beat an index after fees, everyone looks around and says, 'I'm in the 10%.'” amazon.com/gp/aw/d/059308…
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