12 minutes of invaluable wisdom in this video.
https://youtu.be/XNV1F5RapB4
Key point: No one knows what the future holds, but if you invest in an index fund, you’ll at least have some allocation to the big winners.
intercst
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No one knows what the future holds,
Not at all believable.
WEB has made tens of billions of dollars getting it right what will go up and what will go down.
He owns brokerages, banks and insurers. He never admits he knows OFTEN what will do what in the marketplace in advance based on the economy, the financial mood of the markets, and the underlying business.
If WEB ever made a public prediction he would be opening himself up to massive liabilities. He is as cute as home made apple pie saying no one knows. All folksy. Dont believe it. People spend 100s of thousands of dollars per share to buy into his abilities.
It is only a rumor that WEB spreads.
I agree with him, if you want to buy and hold for a long period, get the index. In fact I wish I had realized stuff like this more back in 1989, when I started my career out of college. Wish I had saved a bigger percentage into my 401k plan (even though, financially, that would have been hard). Wish I would have simply bought the market index all these years. I did ride out the tech bust (I was younger). I did not ride out the housing bust (I was older). Worse, I had let Morgan Stanley get me into a variety of special mutual funds (and at high loads and fees) in the late 90’s and ought’s as well. The losses I had in '08, coupled with getting out of the market for too long, meant that investing an in index, at my age, wasn’t going to work.
In other words, younger self made life harder on current self. 
I like WEB’s advice. But you need to follow that advice starting at a young age, I feel.
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bjurasz writes,
Worse, I had let Morgan Stanley get me into a variety of special mutual funds (and at high loads and fees) in the late 90’s and ought’s as well. The losses I had in '08, coupled with getting out of the market for too long, meant that investing an in index, at my age, wasn’t going to work.
In other words, younger self made life harder on current self.
Absolutely!
A lot of my success is due to that 3-day financial planning course I took as an 18-yr-old Freshman in Engineering school where the instructor emphasized the importance of fees and commissions. It was by far the most valuable thing I gleaned from either Engineering school or my MBA.
It takes a lot of people a decade or two before they realize that they’ve been screwed by a financial advisor. I was able to avoid all that, and get an extra decade or two of compounded investment returns as a result. It makes a phenomenal difference.
intercst
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I have a good friend who showed my how the “financial advisor” game works psychologically. What was she buying from her advisor? Certainty and peace of mind, both with no basis. She acknowledged hearing my warning, but my advice did not offer her what she wanted, which was security and peace of mine. The scamsters at all levels know exactly what they are selling, and how to hide the cost in current commissions and fees while taking no part in the losses.
david fb
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