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jerryking : ken_fisher   3

The lesson for all investors arising from the lewd comments of a billionaire fund manager
OCTOBER 23, 2019 | The Globe and Mail | by IAN MCGUGAN

The money management industry that, in one way or another, is trying to seduce you.....The key to arriving at a mature relationship is seeing through the patter. Every fund company can trot out attractive, well-educated people with well-researched insights about the market. But look beyond the superficial charm.
More often than not, this will result in disappointment. The performance of most actively managed funds consistently lags passive market benchmarks, especially as you look at longer periods. In Canada, more than nine in every 10 funds underperformed their respective benchmarks over the 10 years to the end of 2018, according to S&P Dow Jones Indices.

In the United States, similar long-term trends hold true. Even the endowments of Ivy League universities, managed by teams of highly paid professionals, have failed to keep pace with a simple 60/40 portfolio of 60 per cent U.S. stocks and 40 per cent U.S. bonds over the past decade, according to research firm Markov Processes International. One simple lesson to take away from this is that indexing should be the default strategy for most small investors. Unless you have a strong view of where the market is going next, or a compelling reason to believe in a specific money manager, putting money into a low-cost, widely diversified index fund makes sense. No, it’s not going to work all the time – no investing strategy does – but it is hard to shrug off the long-term evidence of superior performance.

John Huber at Saber Capital Management, is often asked what his edge, or advantage, is. “Institutional investors seem especially interested in this question, and the edge that they are almost always looking for is some form of informational edge or insight that the rest of the market isn’t aware of,”......The problem is that such edges don’t exist any more. Oceans of financial and corporate information are available to any professional investor. Legions of professionals pore over that data, looking for reasons to buy or sell. Nobody knows more than anyone else – at least, not legally.......The only sustainable edge, Mr. Huber argues, is maintaining a different time horizon than the overall market.....
active_investing  commoditization_of_information  disappointment  index_funds  informational_advantages  investors  Ken_Fisher  lessons  money_management  passive_investing  slight_edge  time_horizons 
october 2019 by jerryking
Three Core Questions
OCTOBER 27, 2006 | SmartMoney.com | By DONALD LUSKIN.

Canadian economists Dan Ciuriak and John Curtis argue in a provocative new study that maybe we have “everything all wrong” about how the global economy works. They’ve identified a series of anomalies that “call into question the basic understanding of economics that underpins policy formulation today,” in their paper, What If Everything We Know About Economic Policy is Wrong?
personal_finance  Ken_Fisher  investment_advice  economists  anomalies  questions  pretense_of_knowledge  think_threes  global_economy 
october 2011 by jerryking
FT.com / Wealth - Ask before you dive in and buy
November 17 2006 21:04 | Last updated: November 17 2006 21:04
FT Book review by By Anuj Gangahar of ' The Only Three Questions that
Count' by Ken Fisher.

Raising questions should be the constant mantra of investing.
books  book_reviews  equity_research  Ken_Fisher  investing  questions  think_threes 
march 2009 by jerryking

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