I prefer passive index funds as fees are substantially lower than active funds. Also, often even with good fund managers, they're forced to sell stocks in downturns due to ppl taking out money from their fund.
Secondly, it's very hard to outperform the index if your fund grows too big, as you can't buy a too big stake in single companies without risking having too much influence over its performance. Hence, you become forced to diversity so much that your fund start mimicking index performance + fees
Yes, I believe so. In fact, perhaps the world's most famous value investor, Warren Buffet, have said that "In my view, for most people, the best thing to do is to own the S&P 500 index fund."
What a great and important tip! Indeed there is no 100% certainty about anything!
Yes, and once you believe that long enough, you will certainly lose everything you fought so hard to earn...
How do you feel about investing in funds rather than picking one stock?
I prefer passive index funds as fees are substantially lower than active funds. Also, often even with good fund managers, they're forced to sell stocks in downturns due to ppl taking out money from their fund.
Secondly, it's very hard to outperform the index if your fund grows too big, as you can't buy a too big stake in single companies without risking having too much influence over its performance. Hence, you become forced to diversity so much that your fund start mimicking index performance + fees
Thanks for the prompt response.
So, funds (mostly passive) are also a big part of value investment, right?
Hope to see more posts about them in the future!
Yes, I believe so. In fact, perhaps the world's most famous value investor, Warren Buffet, have said that "In my view, for most people, the best thing to do is to own the S&P 500 index fund."
yeah, hope to see more of those in your future posts.
May be a breakdown of popular Emaxis Slims or other similar options in Japan.
And also bonds (which I think Buffett refers to have as 10% of one's portfolio as well).