Quote:
Originally Posted by SSLance
Couple of days ago I did a little 18 month portfolio performance comparison, mine against my business partner's which is managed by a big high faluting wealth management planner.
After you take out the 1% management fee he pays, my portfolio beat his by a couple of tenths of a point...and I'm still less than 50% invested, the rest in money market cash. 
You should have seen the look on his face when I shared. lol...
And that doesn't take into consideration the income tax consequences of the odd trade here and there the wealth planner did (probably to make it appear as if he knows what he is doing). And oh yeah, the fees...added up to over $45,000...so while the advisor made $45,000 managing his money, he was basically even over the last 18 months. |
Sad isn't it?!?!?!
The whole reason behind this thread is to keep the investing SIMPLE -- Easy to learn and understand - and to show that you can EARN money on your money without having to micromanage, or make a bunch of trades. It's just simple investing - more like buying rental real estate. Sure there are the occasional hiccups and worries... just like when the renter moves in the middle of the night. But overall - nobody needs a professional.
I have an entire team just at Wells Fargo... We have the big table meetings on occasion - and go to lunch - and play golf etc. I can tell you without hesitation they don't know one single thing more than I do. Ditto on the VC (Venture Capital) money... which is nothing more than a group of people that have too much money... we pool some cash and choose some investment opportunities. It's a complete crap shoot. Luckily - it only requires one hit to cover up the 9 bottomless pits... The VC at least puts people inside the investments in an effort to help the companies - and also to use connections - and create synergies if possible, and to find the right people when needed.