Become A Wise Index Investor
By Lowell Herr:
"What distinguishes index funds is that they don't presume to have greater wisdom than the collective market, but instead try to channel its wisdom to your advantage." - Zack O'Malley Greenburg
, a financial journalist.
Daniel R. Solin writes in his recent book, The Smartest Portfolio You'll Ever Own, "I am frequently invited to talk to investment clubs. I have a standard response: You don't want me because I will tell you either to disband your group or to call it a social club because that's what it is." Having been involved in two investment clubs, Solin has it right.
To back up my contention, here is the current performance data that sums up the performance of hundreds of investment clubs. From 12/31/2000 through 9/8/2011 the average return of investment clubs was -3.0% annually vs. 2.1% for the VTSMX index. That is a difference of 5.1% annually. Using data from theComplete Story »