Comments on: DIY investing under attack http://blog.canadianbusiness.com/diy-investing-under-attack/ Fri, 20 Nov 2009 07:52:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: CanadianInvestor http://blog.canadianbusiness.com/diy-investing-under-attack/comment-page-1/#comment-370 CanadianInvestor Tue, 26 Aug 2008 21:55:44 +0000 http://blog.canadianbusiness.com/?p=268#comment-370 Hmm, it's a bit hard to pick apart Mr. West's argument because it's all just opinion. Nary a fact, study or statistic about the performance of individual investors sullies his article. Last October I came across and blogged an article that showed that serious DIY investors performed better than the market - see http://canadianfinancialdiy.blogspot.com/2007/10/individual-investors-can-outperform.html. At the same time, John Bogle has documented the serious under-performance of individual investors compared to the under-performing mutual funds in which they invest, mainly because of performance chasing. see http://money-and-investing.dogberrypatch.com/archives/bogle-on-selecting-mutual-funds-costs-matter/ So it isn't a given that either the individual or the pro will do better. Like CC, I tell anyone who will listen that it is easy and sure to go the index route. It's dull but effective over the long haul. Hmm, it’s a bit hard to pick apart Mr. West’s argument because it’s all just opinion. Nary a fact, study or statistic about the performance of individual investors sullies his article.

Last October I came across and blogged an article that showed that serious DIY investors performed better than the market – see http://canadianfinancialdiy.blogspot.com/2007/10/individual-investors-can-outperform.html.
At the same time, John Bogle has documented the serious under-performance of individual investors compared to the under-performing mutual funds in which they invest, mainly because of performance chasing. see http://money-and-investing.dogberrypatch.com/archives/bogle-on-selecting-mutual-funds-costs-matter/

So it isn’t a given that either the individual or the pro will do better. Like CC, I tell anyone who will listen that it is easy and sure to go the index route. It’s dull but effective over the long haul.

]]> By: Canadian Capitalist http://blog.canadianbusiness.com/diy-investing-under-attack/comment-page-1/#comment-340 Canadian Capitalist Tue, 26 Aug 2008 04:23:02 +0000 http://blog.canadianbusiness.com/?p=268#comment-340 Thanks for the mention. If the maxillofacial guy is a passive investor who can construct a diversified portfolio and keep fees and expenses down, I'll pick him anyday over a guy who has been "studying" the markets 50 weeks a year for the past 20 years. Thanks for the mention. If the maxillofacial guy is a passive investor who can construct a diversified portfolio and keep fees and expenses down, I’ll pick him anyday over a guy who has been “studying” the markets 50 weeks a year for the past 20 years.

]]> By: Truth or Talk http://blog.canadianbusiness.com/diy-investing-under-attack/comment-page-1/#comment-317 Truth or Talk Sun, 24 Aug 2008 19:39:35 +0000 http://blog.canadianbusiness.com/?p=268#comment-317 The irony is, nowadays the smartest stuff I see, is coming out of the blogs. http://truthortalk.wordpress.com/ The irony is, nowadays the smartest stuff I see, is coming out of the blogs.

http://truthortalk.wordpress.com/

]]> By: REP http://blog.canadianbusiness.com/diy-investing-under-attack/comment-page-1/#comment-298 REP Sun, 24 Aug 2008 12:41:22 +0000 http://blog.canadianbusiness.com/?p=268#comment-298 Hi, I'm a DIYer mainly, but actually I like David West's column. I've found it quite useful from time to time. I think he is trying to say that there are a lot of people out there who have no idea what they are doing. Reading various discussion forums and watching the erratic and meaningless rise and fall of stocks, I have to agree. If they can't see their way to paying an advisor, at least get some basic education. That is his message, I believe. REP Hi,

I’m a DIYer mainly, but actually I like David West’s column. I’ve found it quite useful from time to time. I think he is trying to say that there are a lot of people out there who have no idea what they are doing. Reading various discussion forums and watching the erratic and meaningless rise and fall of stocks, I have to agree. If they can’t see their way to paying an advisor, at least get some basic education. That is his message, I believe.

REP

]]> By: tom smart http://blog.canadianbusiness.com/diy-investing-under-attack/comment-page-1/#comment-269 tom smart Sat, 23 Aug 2008 12:33:10 +0000 http://blog.canadianbusiness.com/?p=268#comment-269 I gave up on a financial advisor who said, "when I started out I couldn't afford to put you into the best funds". They are salespeople looking for a large client base. I gave up on a financial advisor who said, “when I started out I couldn’t afford to put you into the best funds”. They are salespeople looking for a large client base.

]]> By: Larry MacDonald http://blog.canadianbusiness.com/diy-investing-under-attack/comment-page-1/#comment-237 Larry MacDonald Fri, 22 Aug 2008 21:04:12 +0000 http://blog.canadianbusiness.com/?p=268#comment-237 MJ Maybe some other points can be added too. One is conflicts of interest (e.g. incentive to recommend funds with trailer fees rather than funds without them). Another is academic research showing that it may be a myth advisers keep investors from "buying high and selling low" LM MJ
Maybe some other points can be added too. One is conflicts of interest (e.g. incentive to recommend funds with trailer fees rather than funds without them). Another is academic research showing that it may be a myth advisers keep investors from “buying high and selling low”
LM

]]> By: Michael James http://blog.canadianbusiness.com/diy-investing-under-attack/comment-page-1/#comment-234 Michael James Fri, 22 Aug 2008 19:06:39 +0000 http://blog.canadianbusiness.com/?p=268#comment-234 David West's argument falls down on two points. The first is your point about losing to the index. The second is that most financial advisors are salespeople who actually know rather little about investing. David West’s argument falls down on two points. The first is your point about losing to the index. The second is that most financial advisors are salespeople who actually know rather little about investing.

]]> By: WhereDoesAllMyMoneyGo.com http://blog.canadianbusiness.com/diy-investing-under-attack/comment-page-1/#comment-231 WhereDoesAllMyMoneyGo.com Fri, 22 Aug 2008 17:02:08 +0000 http://blog.canadianbusiness.com/?p=268#comment-231 Much obliged for the mention - have a great weekend. Much obliged for the mention – have a great weekend.

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