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No-win investing… its the norm

October 17, 2011

It is pretty much impossible to succeed as regular retail investor. My view now is that I’m not concerned so much with making money, as I’m concerned with not losing it.

I’m a pretty thrifty guy and I could probably save enough for retirement so long as I have a modest gain at best, or at least so some so-called fund or money manager doesn’t lose it all for me.

The WSJ seems to agree to some extent… basically that investing is almost a no-win endeavor.

My key view aligns with their first point on excessive fund costs, that is why I’m fanatical about investing in low cost funds (mainly index funds.)

For point two, I’ve found the only way to get emerging markets exposure is to pay a bit more on the fees. You can’t win. However, I don’t come within a million miles of a target-date fund.

And has far as hedge-funds and other fancy investment vehicles, I’m reminded of the oft quoted “why do we create new ways to lose money when the old ones work so well.”

Five Groups Who Should be Mad at Wall Street – WSJ.com.

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