By now, it’s no secret that the costs charged by investment funds are critically important. In fact, when choosing among funds in the same category, they’re the single most important differentiator. In the words of Morningstar, the investment research firm, “If there's anything in the whole world of [...]
My broker
I'll never forget my first interaction with Wall Street. I was in my early 20s, just getting started in my career, when I was introduced to a stockbroker—let's call him Eddie. He was a pleasant fellow with a good reputation and all of the trappings of success, including a DeLorean in the driveway. [...]
Priceless
Suppose you walked into a restaurant, and they handed you a menu without prices. Would you conclude that: (1) Everything is free (2) Something funny is going on I doubt anyone would choose option 1; it defies logic. Yet, this is how the 401(k) industry routinely operates, and large numbers [...]
May 1, 1975
In the history of the investment industry, May 1, 1975 is a date that ought to be enshrined. On that day, the industry took not one, but two, remarkable steps forward. The first change was an action by the SEC to deregulate stock brokers. For the first time in more than a hundred years, brokers [...]
A popular investment worth avoiding
Albert Einstein once said, “Everything should be made as simple as possible, but no simpler." When it comes to investing, I have always believed that the simplest approach is the best approach. But, in recent years, a new type of investment has, I believe, crossed over into the “too simple” [...]
