Comments on: Why invest your own money? http://www.canadiancapitalist.com/why-invest-your-own-money/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: From the Archives: Why invest your own money? | MoneySense http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-231189 From the Archives: Why invest your own money? | MoneySense Wed, 07 Jul 2010 12:52:08 +0000 http://www.canadiancapitalist.com/?p=1014#comment-231189 [...] Why invest your own money? [...] [...] Why invest your own money? [...]

]]> By: dj http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-200864 dj Sun, 27 Sep 2009 03:17:46 +0000 http://www.canadiancapitalist.com/?p=1014#comment-200864 Well looking at the date of this posting, a lot of managed money went down the pipe in Sept. and Oct. most pro managed money lost 20 to 40 present. only now they are back even sept2009 Well looking at the date of this posting, a lot of managed money went down the pipe in Sept. and Oct. most pro managed money lost 20 to 40 present. only now they are back even sept2009

]]> By: Trevor Wilson http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-157726 Trevor Wilson Sat, 27 Sep 2008 00:16:47 +0000 http://www.canadiancapitalist.com/?p=1014#comment-157726 If investment managers are as good as they say they are why don't they do like other business and back it up with a gaurantee? or is that a dirty word to them. I trust them about as much as I would a car salesman or horse trader. Caveat emptor. My pappy taught me a very important investment lesson early n my investment life. He said that nobody but nobody will look after your hard earned money better that you provided you work just as hard investing it as you did to earn it. Only an incompetent, foolish or socialist leaning person would rely on someone to manage their affairs. Do your homework, learn from your mistakes and have courage in your own self-reliance and take responsibility for your own life. Good Hunting Investors If investment managers are as good as they say they are why don’t they do like other business and back it up with a gaurantee? or is that a dirty word to them. I trust them about as much as I would a car salesman or horse trader. Caveat emptor. My pappy taught me a very important investment lesson early n my investment life. He said that nobody but nobody will look after your hard earned money better that you provided you work just as hard investing it as you did to earn it. Only an incompetent, foolish or socialist leaning person would rely on someone to manage their affairs. Do your homework, learn from your mistakes and have courage in your own self-reliance and take responsibility for your own life.
Good Hunting Investors

]]> By: Canadian Business Blog » Blog Archive » DIY investing under attack http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-149843 Canadian Business Blog » Blog Archive » DIY investing under attack Fri, 22 Aug 2008 15:07:29 +0000 http://www.canadiancapitalist.com/?p=1014#comment-149843 [...] Canadian Capitalist took Mr. Mandelman to task on this point in his July 22 post; what CC said also seems applicable to Mr. West’s thesis. And as the creators of MoneySense’s [...] [...] Canadian Capitalist took Mr. Mandelman to task on this point in his July 22 post; what CC said also seems applicable to Mr. West’s thesis. And as the creators of MoneySense’s [...]

]]> By: Cathy http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-146707 Cathy Tue, 05 Aug 2008 12:39:21 +0000 http://www.canadiancapitalist.com/?p=1014#comment-146707 This article made me so angry! One small point - when did we get to the point where baking a loaf of bread, a staple, got to be a specialized endeavor that takes so much time you couldn't possibly do that and hold down a job? Last time I checked, hands-on time for baking bread was about 15 minutes in total, the rest of the time is totally hands-off. And let me tell you something, after a few attempts, you will find fresh bread you bake yourself is easy and WAY better than store-bought. And as for my last "financial advisor"/fund salesperson, I could have more fun standing on my roof and throwing twenties into the wind all by myself while ignoring my small portfolio that didn't seem to warrant any attention whatsoever. Now I'm on E*Trade, matching the index and keeping my fees. This article made me so angry! One small point – when did we get to the point where baking a loaf of bread, a staple, got to be a specialized endeavor that takes so much time you couldn’t possibly do that and hold down a job? Last time I checked, hands-on time for baking bread was about 15 minutes in total, the rest of the time is totally hands-off. And let me tell you something, after a few attempts, you will find fresh bread you bake yourself is easy and WAY better than store-bought. And as for my last “financial advisor”/fund salesperson, I could have more fun standing on my roof and throwing twenties into the wind all by myself while ignoring my small portfolio that didn’t seem to warrant any attention whatsoever. Now I’m on E*Trade, matching the index and keeping my fees.

]]> By: squawkfox » Welcomes, Link Love, and Carnivals Oh My! http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-144969 squawkfox » Welcomes, Link Love, and Carnivals Oh My! Sun, 27 Jul 2008 21:09:40 +0000 http://www.canadiancapitalist.com/?p=1014#comment-144969 [...] Canadian Capitalist is Loving the Bear Market and questions Why invest your own money? [...] [...] Canadian Capitalist is Loving the Bear Market and questions Why invest your own money? [...]

]]> By: Phil S http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-144951 Phil S Sun, 27 Jul 2008 20:32:03 +0000 http://www.canadiancapitalist.com/?p=1014#comment-144951 Regardless of whether you go with a managed large cap equity fund or a TSX index fund, if you look at the top 10 holdings, they are usually quite similar. Big 5 banks, Manulife & Sun Life insurance, BCE (in the past, maybe Rogers or Telus in the future), maybe Encana / Imperial Oil, a couple of "rocks & trees" companies and those make up the index as well as most large cap equity funds. The TSX, on a market-weighted basis, is so UN-diversified that the top 10 holdings makes up the majority of our holdings anyways. So, if you're a buy & hold investor such as in your RSP account, then why use a mutual fund or ETF at all? Just buy the top 10 biggest companies on the TSX and you'll mimic the index anyways. Aside from the trading commissions, it will cost you a 0% MER. That's zero. Nothing, nada. And those large caps are so liquid that you can buy or sell them at any time without having to worry about the bid/ask spread. Regardless of whether you go with a managed large cap equity fund or a TSX index fund, if you look at the top 10 holdings, they are usually quite similar. Big 5 banks, Manulife & Sun Life insurance, BCE (in the past, maybe Rogers or Telus in the future), maybe Encana / Imperial Oil, a couple of “rocks & trees” companies and those make up the index as well as most large cap equity funds.

The TSX, on a market-weighted basis, is so UN-diversified that the top 10 holdings makes up the majority of our holdings anyways. So, if you’re a buy & hold investor such as in your RSP account, then why use a mutual fund or ETF at all? Just buy the top 10 biggest companies on the TSX and you’ll mimic the index anyways. Aside from the trading commissions, it will cost you a 0% MER. That’s zero. Nothing, nada. And those large caps are so liquid that you can buy or sell them at any time without having to worry about the bid/ask spread.

]]> By: Old Dude http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-144932 Old Dude Sun, 27 Jul 2008 15:18:03 +0000 http://www.canadiancapitalist.com/?p=1014#comment-144932 CC I am always sceptical of studies that use 5yr time frames ,that is not a long enough time frame in which to draw a solid conclusion. They tend to smell of cherry picking stats. Here is something to ponder ,if an investor had purchased shares in the i60 in July of 2000 his annual rate of return to July 2008 would have been about 5%. A no-load low mer bank fund would have produced about a 10% rate of return. Even during this time the active fund still outdistanced the sp/tsx total return index. Yes this is also cherry picking stats. To me 10yrs and beyond is more meaningful with regards to any studies. Don't be to hasty to jump to conclusions with regards to active funds in Canada. No I don't have proof that they are better than index products ,my views come from 30yrs of experience and that with regards to Canada I still prefer to hedge my bets , index and active (No Load, Low Mer).I agree index products for the most part are the way to go in the US and International. CC
I am always sceptical of studies that use 5yr time frames ,that is not a long enough time frame in which to draw a solid conclusion. They tend to smell of cherry picking stats. Here is something to ponder ,if an investor had purchased shares in the i60 in July of 2000 his annual rate of return to July 2008 would have been about 5%. A no-load low mer bank fund would have produced about a 10% rate of return. Even during this time the active fund still outdistanced the sp/tsx total return index. Yes this is also cherry picking stats. To me 10yrs and beyond is more meaningful with regards to any studies. Don’t be to hasty to jump to conclusions with regards to active funds in Canada. No I don’t have proof that they are better than index products ,my views come from 30yrs of experience and that with regards to Canada I still prefer to hedge my bets , index and active (No Load, Low Mer).I agree index products for the most part are the way to go in the US and International.

]]> By: Phil S http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-144778 Phil S Sun, 27 Jul 2008 00:11:51 +0000 http://www.canadiancapitalist.com/?p=1014#comment-144778 You forgot one more category of DIY investors, which is the category into which I fall... Crusty investors who have already been ripped off by bad investment advisors in the past who were just looking to stuff your money into their pockets by pushing the product that yields them the most commission return. If I hadn't had such a bad experience with investment advisors, then perhaps I wouldn't be such an adamant DIY investor. Just like the joke goes (which was originally created for lawyers), it's just the 95% of them out there that makes the rest all look bad... You forgot one more category of DIY investors, which is the category into which I fall… Crusty investors who have already been ripped off by bad investment advisors in the past who were just looking to stuff your money into their pockets by pushing the product that yields them the most commission return. If I hadn’t had such a bad experience with investment advisors, then perhaps I wouldn’t be such an adamant DIY investor.

Just like the joke goes (which was originally created for lawyers), it’s just the 95% of them out there that makes the rest all look bad…

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/why-invest-your-own-money/#comment-144357 Canadian Capitalist Fri, 25 Jul 2008 01:25:04 +0000 http://www.canadiancapitalist.com/?p=1014#comment-144357 Advisor user: Sounds to me that the positives you are pointing out are services provided by your advisor, not a professional stock picker. There is so much evidence that active management after expenses and taxes is a tough game with low odds of doing better than the benchmarks. Advisor user: Sounds to me that the positives you are pointing out are services provided by your advisor, not a professional stock picker. There is so much evidence that active management after expenses and taxes is a tough game with low odds of doing better than the benchmarks.

]]>