A fed up investor creates and manages his own portfolio and ranks it against experts, the TSE index and a well known mutual fund.
Saturday, December 24, 2011
thoughts on my current investing skill
So if I'm so down on financial advisers and mutual funds why am I buying them?
Well, I hate to admit it, but I am also angry with myself.
On my own I can't seem to do better than any of the financial adviser or their most common mutual fund. I am not dumb, but investing sure makes me feel dumb.
Investing just doesn't seem to work the way I think it should. What I quite logically think should work, rarely does. And what I think is a cockamamie idea quite often will provide wondrous returns.
There is a Dilbert comic where someone and the pointy haired boss are talking about investing. The pointy haired boss says he made a killing in gold. When asked about his investment strategy he says he bought gold because it was shinny.
I know there is more to investing than buying the shiny things, but I also think my investment tolerance, how many funds are under management in a mutual fund, portfolio re-balancing, and the efficiency of the stock market, are all irrelevant or incorrectly applied. More on all of these a little bit later.
The real problems with my investing strategy is, as I said, nothing seems to work, so I do listen to the talking heads and end up all over the map.
I am sure I can do better than I have and better than a lot of mutual funds.
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