• Steve Martin

Rick Kahler: Build Wealth Wisely With Passive Investing | Financial Awakenings

“Buy low and sell high.” That was my simple approach when I was a smart young investment advisor. I poured over a company’s balance sheet, earnings statements, and forecasted returns. Then I bought those companies that were bargains and waited for my gains to roll in. More times than not, they did—eventually.

The problem came with the “not” and “eventually.” A majority of my picks did go up in value, but the minority that were “nots” still lost enough to have a negative impact on my bottom line. Even more frustrating, some of my “nots” turned into gains “eventually” after I sold them.

My investment returns were similar to findings from Dalbar, Inc., a financial services research firm. Dalbar’s studies have shown that average active investors barely beat inflation over the long term. They significantly under-perform investors who put their money in an index fund of stocks and leave it alone.

via Rick Kahler: Build Wealth Wisely With Passive Investing | Financial Awakenings.

1 view0 comments

Recent Posts

See All

This article explains why I NEVER recommend indexed annuities to clients.  Please let me know if you have any questions. Steve =========================================== A tweet pitching equity-index

Larry Swedroe does a great job of talking about the importance of re-balancing.  Steve ============================================= Last year, U.S. real estate investment trusts (REITs) were the best