MensTennisForums.com - View Single Post - Financial clusterfuck in Europe

View Single Post

Old 04-28-2010, 11:51 AM   #59
country flag buddyholly
RAVE ON
 
buddyholly's Avatar
 
Join Date: Feb 2004
Location: LUBBOCK TX
Posts: 13,971
buddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond reputebuddyholly has a reputation beyond repute
Default Re: Credit crisis in Greece, others to follow...?

Quote:
Originally Posted by Lopez View Post
As a Finance student myself, I've learnt to be sceptical towards "professional" portfolio managers.

Studies show that, while professional portfolio managers do make a better ROI than the index, the portfolio management fees push the ROI actually lower than the market. Additionally, there is no statistically significant correlation between the performance years of portfolio managers (i.e. that good years would be followed by good years, suggesting a "talented" investor) save for a few anomalies.

Most, if not all the time, people would be better of by investing to the S&P 500: with no administrative costs, it outperforms portfolio managers.
It helps if your manager is also a friend, who doesn't make unnecessary trades, and who outperforms the S&P by far.
__________________
JOIN THE CHURCH OF THE FLYING SPAGHETTI MONSTER TODAY
buddyholly is offline View My Blog!   Reply With Quote