Why Is There So Much Confusion About Total Return Investing?
By Lawrence Weinman:
I must say I came away perplexed when reading many descriptions and critiques about the "myth" of the total return goal in investing. I doubt I will convince a particular group. This is an effort to clarify things for those that might be open to approaching this issue from a different perspective. The object of total return is to attain maximum growth of wealth. To put it most simply the goal is to increase the value of the investment portfolio. In fact it might clarify the discussion if the term total return was put aside and growth of wealth, growth of account value or even maximizing account value was used as a substitute. At this point the only (yes it's a big one) debate is how to allocate the portfolio to maximize growth and minimize risk ... the quest for the elusive alpha.
To correct one misnomer, the idea ofComplete Story »
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