A Quote by Joel Spolsky
Full service brokers, in this day and age of low cost mutual funds and discount brokers, are really nothing more than machines for ripping off retail investors.
Related Quotes
Wall Street, with its army of brokers, analysts, and advisers funneling trillions of dollars into mutual funds, hedge funds, and private equity funds, is an elaborate fraud.
Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it's disgusting. It's much better to be part of a system that delivers value to the people who buy the product. But if it makes money, we tend to do it in this country.
We need a federal government commission to study the way our financial services system is working - I believe it is working badly - and we also need more educated investors. There are good long term low-priced mutual funds - my favorite is a total stock market index fund - and bad short term highly priced mutual funds. If investors would get themselves educated, and invest in the former - taking their money out of the latter - we would see some automatic improvements in the system, and see them fairly quickly.
Invest in low-turnover, passively managed index funds... and stay away from profit-driven investment management organizations... The mutual fund industry is a colossal failure... resulting from its systematic exploitation of individual investors... as funds extract enormous sums from investors in exchange for providing a shocking disservice... Excessive management fees take their toll, and manager profits dominate fiduciary responsibility.
Millions of mutual-fund investors sleep well at night, serene in the belief that superior outcomes result from pooling funds with like-minded investors and engaging high-quality investment managers to provide professional insight. The conventional wisdom ends up hopelessly unwise, as evidence shows an overwhelming rate of failure by mutual funds to deliver on promises.
Most active mutual funds are more interested in collecting fees than in boosting returns for investors.
The general systems of money management today require people to pretend to do something they can't do and like something they don't. It's a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals.
Surprise! The returns reported by mutual funds aren't actually earned by mutual fund investors.
Many financial innovations such as the increased availability of low-cost mutual funds have improved opportunities for households to participate in asset markets and diversify their holdings.
There were two qualities about the mutual funds of the 1920s that made them extremely speculative. One was that they were heavily leveraged. Two, mutual funds were allowed to invest in other mutual funds.
The reason so many financial advisors are called brokers is because they are often broker than you.
Washington is nothing if not an orchard of absurdities, and poking fun at power brokers is neither sex blind nor for the faint of heart.
In investing, you get what you don't pay for. Costs matter. So intelligent investors will use low-cost index funds to build a diversified portfolio of stocks and bonds, and they will stay the course. And they won't be foolish enough to think that they can consistently outsmart the market.
Washington was not just a city of marble buildings and smoke-filled rooms and power brokers, but also a town full of people who do care about each other, in good times and bad.
Index funds are the only rational alternative for almost all mutual fund investors.
Move your personal investments and retirement funds to socially responsible investment (SRI) funds that support only those corporations that uphold higher standards of behavior. Returns on SRI funds are usually equal to, if not better than, many of the well-known traditional mutual funds.
Related Authors
Anousheh Ansari Quotes
American
Engineer
Arthur Alfred Lynch Quotes
Australian
Engineer
Fritz Todt Quotes
German
Engineer
John Congleton Quotes
American
Engineer
Joseph M. Juran Quotes
American
Engineer
Kshama Sawant Quotes
American
Engineer
Martin Fowler Quotes
American
Engineer
Matt Cutts Quotes
American
Engineer
Michael Martin Hammer Quotes
American
Engineer
Oliver Heaviside Quotes
English
Engineer
Owsley Stanley Quotes
American
Engineer
Tom DeMarco Quotes
American
Engineer
Vinton Cerf Quotes
American
Engineer
William C. Brown Quotes
American
Engineer
Willis Harman Quotes
American
Engineer