Basically, unless you're a gun investor and you have heaps of time to invest you're not going to beat the index and you're better off putting your cash into low cost index funds that mimic the company spread of the major indices. There are some good quotes through out.
“Invest in nonprofit index funds,” David Swensen says unequivocally. “Your odds of beating the market in an actively managed fund are less than 1 in 100.”
“Buy an index fund. This is the most actionable, most mathematically supported, short-form investment advice ever.”, the Motley Fool.And plenty of good arguments to back up the points made by the various professionals and experts that are quoted. Interestingly enough the article actually begins by describing what the people at Google did just before the IPO in 2005, knowing that with the IPO a whole bunch of programmers and engineers where going to get their hands on a lot of cash they thought it prudent to get them some advice.
Rather than letting in the rabid hordes of fund managers and the like that were gathering outside like flies around a trash can, they brought in impartial investment advisors, lecturers and fund managers that weren't there to get a profit out of the pundits.
None of the companies that I have worked for have offered advice like this to me, so I have to find it the hard way, by trawling the internet. It would be great if more people where taught sound investment and monetary practices but alas I don't see that happening and besides if you're not the investment fool then you're the one prying the money from the fools hands right?
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