jasonzweigwsj A mutual fund that hugs the benchmark and charge a fee then its impossible over time. Buffett didnt have a set investment strategy that hug the benchmark and didnt charge a fee. Yet the majority of retail money is invested in mutual funds.
jasonzweigwsj Index funds are fine but they never beat the market presuming they follow the index.
jasonzweigwsj 'Price is what you pay. Value is what you get.' - Warren Buffett
jasonzweigwsj Warren Buffett calls these great and high quality businesses 'wonderful companies' and that is exactly what Coca-Cola was for Berkshire Hathaway.
jasonzweigwsj Value investing is based on the belief that the stock market eventually values companies appropriately and that fluctuations in price will be corrected over time.
jasonzweigwsj At the core of Warren Buffett's investment philosophy is value investing. This actually means to identify high quality companies whose stocks are trading at a lower price than should be.
jasonzweigwsj “That’s what I’ve been telling every rich friend of mine for a long time. People who are rich just can’t accept that fact. If you’re rich, you can buy a lot of things, but on average you can’t buy above-average performance.” says Warren Buffett.
jasonzweigwsj And if you don't find 'a blast of lightening', you should favor index funds.
jasonzweigwsj “You’re betting enormously on your ability to be a reader of people, even more than your ability to select securities. They’re all promising over-performance and spending a lot of money on selling it very persuasively. Overwhelmingly this is a world of salespeople.”
jasonzweigwsj “I do think if you know something about finance and about people, you may be able to identify someone out there who can over-perform. But for every one you identify who can, there’ll be 1,000 others who don’t turn out to be able to.” said Warren Buffett in an interview.
jasonzweigwsj Warren Buffett believes that 'markets are efficient in general, but not perfectly efficient'.
jasonzweigwsj “The trick is not to pick the right company. The trick is to essentially buy all the big companies through the S&P 500 and to do it consistently.' says Warren Buffett.
jasonzweigwsj Individual stocks are expensive and in any case advisers will take a big part of the earnings. Instead, index funds are inexpensive and aren’t tied to the success of one single company in particular.
jasonzweigwsj Warren Buffett's advice for ordinary investors is to put money into a very low-cost S&P 500 index fund, that passively tracks the stock market as a whole, rather that trying to beat the market.
jasonzweigwsj Dr. Paul Samuelson believed that the price of assets and bonds fluctuates randomly over time. That's the basis of his 'efficient market' hypothesis. * Although that's not absolutely true, one thing is sure: nobody can always beat the stock market.
jasonzweigwsj While it is more and more difficult to beat the market, informed investors and money-managers will continue to try their chance, even when failure is much likely to happen.
jasonzweigwsj That doesn't however mean that buying and selling stock by expert investors has stopped.
jasonzweigwsj Maybe along the years the business of indexing took away the stock pickers shine, but at the same time it took out of business many bad investors, just as Dr. Paul Samuelson predicted.
jasonzweigwsj Index funds are a more balanced and cheaper option, and also a passive strategy. The index weights any stock by value. If a stock price increases, its weight in the index and its value in the portfolio increase accordingly.
jasonzweigwsj In general, the performance of most mutual funds does not justify the costs. A few talented investors are able to beat the index, at least for some time. If they do so consistently, they will charge a lot for managing the money.
jasonzweigwsj The average investor can perform only as well as the stock market average. Some investors beat the market, others are beaten by it.
jasonzweigwsj The logic behind Dr. Paul Samuelson index fund was based on the idea that stock markets are 'efficient', as any relevant information about a company perspectives for the future are reflected in its share price.
jasonzweigwsj But you cannot argue with evidence: index funds have grown about six times faster than those achieved by active funds managers who select stocks to buy.
jasonzweigwsj Vanguard was not immediately and universally accepted. And it took about 15 years until it really started thriving.
jasonzweigwsj The next year Vanguard took the challenge and launched a simple mutual index fund with low fees for ordinary retail investors.
jasonzweigwsj He thought that a low-cost alternative was needed, so he proposed to set up a low-turnover fund that tracks the S&P index of stocks.
jasonzweigwsj In 1974, Dr. Paul Samuelson argued that most stock pickers should go out of business and that even the best of them are not guarantee for beating the market average.
jasonzweigwsj There could not be a bigger vote of confidence and credit to Warren Buffett, the greatest intelligent investor of all times.
jasonzweigwsj When Nobel Prize winning economist Dr. Paul Samuelson died, his children discovered that he only owned one common stock – Berkshire Hathaway.
jasonzweigwsj Beating the market is hard for Index Funds or for the average investor? 😀 Index funds would be lucky to match the market during normal years. They might match it during booms. But during downturns, with investors bailing out, forcing fire sales, locking in losses... no bonuses☹️
jasonzweigwsj Se fosse outro diria ..oh do...!!mas ja que é o Warrem Buffet.. vou dar um credito☺
jasonzweigwsj