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6 reasons why Wall Street hates Lazy Portfolios
Posted: Tue Mar 27, 2012 10:40 pm
by Ad Orientem
SAN LUIS OBISPO, Calif. (MarketWatch) — “America’s investors have been ripped off as massively as a bank being held up by a guy with a gun and a mask,”? former Securities and Exchange Commission Chairman Arthur Levitt warned in an article in Fortune magazine a decade ago. That same year in his classic “Take On The Street,”? Levitt lambasted the fund industry as “a culture that thrives on hype … withholds important information,”? a “cutthroat business”? that “misleads investors.”? Today, it’s worse.
Lazy Portfolios were born as a defensive move against this relentless war by guys with “masks and guns … ripping off”? America’s 95 million Main Street investors. And the strategies of men like Levitt, Vanguard’s Jack Bogle, Nobel Economist Daniel Kahneman, Warren Buffett, Yale’s Robert Shiller and other industry giants were the inspiration.
Read the rest
here.
The money quote... "If you spend 15 minutes a year worrying about the market, you have wasted 12 minutes of your life." -Peter Lynch
Re: 6 reasons why Wall Street hates Lazy Portfolios
Posted: Wed Mar 28, 2012 12:06 am
by Tyler
LOL. That's my new favorite quote.
Re: 6 reasons why Wall Street hates Lazy Portfolios
Posted: Wed Mar 28, 2012 2:13 am
by smurff
1
Re: 6 reasons why Wall Street hates Lazy Portfolios
Posted: Wed Mar 28, 2012 11:05 am
by Alanw
You mean watching CNBC 8 hours a day is not going to educate you to the point where you can beat the markets?
Re: 6 reasons why Wall Street hates Lazy Portfolios
Posted: Wed Mar 28, 2012 12:04 pm
by MediumTex
Alanw wrote:
You mean watching CNBC 8 hours a day is not going to educate you to the point where you can beat the markets?
It's about as useful as hanging around a casino 8 hours a day thinking it will make you a better gambler when all of the games have a house advantage.
Re: 6 reasons why Wall Street hates Lazy Portfolios
Posted: Thu Mar 29, 2012 9:28 am
by edsanville
Speaking of reducing trading costs, I just set up my ING Direct Sharebuilder Premium Account a few weeks ago. For a $12 monthly fee, you get 12 free "auto-trades." Basically, you can set your account up so that it automatically buys any combination/ratio of 12 stocks, whenever the required funds are present as cash in the account. The best part is that you can change the allocation and required funds amount, at any time.
Right now, I've got it set to auto-invest in the basic PP ETFs, and also some is allocated to the 2xPP using the leveraged ETFs discussed over on the other thread. I could also have it diversify my gold portion amongst different gold ETFs, or any number of other plans... so long as there aren't more than 12 trades. I thought it was a good way to thumb my nose up at the Wall Street Machine in two ways (lazy portfolio and ridiculously low per-trade fees).