|Veblen: author of The Theory of the Leisure Class|
The unsophisticated seek to be sophisticated. This is a fact of economic life and is just a variation of Veblen's observations on conspicuous consumption. This is an area where you don't want to be sophisticated. Stick with the proven low-cost, well-diversified index funds.
Here's some insight into this corner of the investment world: The 10 Greatest Hedge Fund Implosions of All Time by Thorton McEnery.
Gee, when you pay the manager a 2% management fee on average and then a performance fee above and beyond that, you have to make a lot of winning bets to beat the market with those kind of expenses.ReplyDelete
Hey ...these guys are so smart they should be able to overcome those fees. Hah!ReplyDelete