Gyroscopic Investing

I used to read the Motley Fool website frequently several years back to learn about "investing." I haven't been on there in a while since I've learned the truths about index investing and the PP, but I was googling a stock that I'm considering for my VP and an article about that stock from the Motley Fool website popped up so I started looking around.

Turns out they've launched a series of 3 mutual funds to let people invest in the "Fool" way of speculating. The US funds have an expense ratio of around 1.5% and returned HALF of what the S&P500 returned YTD. 8% versus about 16% for the index.

They definitely are fools.

TripleB wrote: Turns out they've launched a series of 3 mutual funds to let people invest in the "Fool" way of speculating. The US funds have an expense ratio of around 1.5% and returned HALF of what the S&P500 returned YTD. 8% versus about 16% for the index.

They definitely are fools.

Not necessarily.  There is tracking error when you engage in a strategy that is not a momentum maket crap weighted strategy that the S&P 500 index represents.

Remember  Andrew Feinberg's famous slam on Jack Bogle from 2006? I do. Well, his suggested active portfolio managers  haven't worked out so well. And that's just from roughly six years! I can't imagine what it will look like after ten or twenty.

MachineGhost wrote:

TripleB wrote: Turns out they've launched a series of 3 mutual funds to let people invest in the "Fool" way of speculating. The US funds have an expense ratio of around 1.5% and returned HALF of what the S&P500 returned YTD. 8% versus about 16% for the index.

They definitely are fools.

Not necessarily.  There is tracking error when you engage in a strategy that is not a momentum maket crap weighted strategy that the S&P 500 index represents.

There is an equal weight S&P etf that can be used if you don't like momentum. Ticker symbol RSP