domingo, 25 de agosto de 2013

Vanguard’s Bogle responds to ‘parasite’ tag

Financial times, John Bogle, 25 August 2013

John Bogle, founder of Vanguard Group, respond to an article of a fund manager, David Smith, who described the index mutual fund as a “passive parasite”. Mr Bogle explains that active management has higher fees than passive management and consumes a huge percentage of the annual returns.

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sexta-feira, 21 de junho de 2013

Fund staff sell active idea but invest passively

Danielle Sottosanti, Financial times, 21 June 2013

According to an Ignites poll, many fund industry professionals invest a sizeable portion of their personal in exchange traded funds (ETFs) and other passive funds, while selling active management products.

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quinta-feira, 4 de abril de 2013

Monkeys beat market cap indices

A study published by Cass Business School's Cass Consulting in London simulated the stock-picking abilities of a monkey (10 million simulations). The "monkeys" (indices constructed randomly) obtained vastly superior returns than a fund manager (market capitalization-weighted index).

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quinta-feira, 21 de março de 2013

You Don’t Need To Understand Your Investments

Mitch Tuchman, Market Riders

Many people invest only inside of their own country or because they recognize the brand name. They choose these investments because they believe they understand them better. Unfortunately this is rarely true and often disastrous for their portfolio’s performance. Investing in a global diversified portfolio is the most effective way to get market returns.

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