In this video Michael Lewis talks about his most recent book, The Big Short ( I'm half way through it now), and bond trading. Michael Lewis was a former bond trader.
In the second half of the video, he reveals that he had a bad experience at Merrill Lynch. He said he just didn't want to be bothered with thinking about his own money management. A Merrill Lynch broker, a family connection, invested his assets in auction rate securities and Lehman preferred --both of which imploded. He then went to Schwab and now has most of his money indexed.
He joins a list of people who know Wall Street and have learned the hard way the wisdom of indexing..
Michael Lewis is one of my favorite writers. I loved Liar's Poker, The New New Thing, Blindside, Moneyball, and now The Big Short,.
In my investment management/advisory practice I come across people who just "don't want to be bothered." And I understand. I feel the same way about plumbing. The faucet starts spraying water in all directions, and my inclination is to ignore it until my wife spots it and then I just want to call a plumber.
The same attitude, as pointed out by Lewis, can be costly in the money management arena.
Again, the second half of this video is worthwhile.
If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.