Perhaps Bush should take on something really affecting the bottom line of average Americans.
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A Money Vacuum
To illustrate his point, Bogle writes that "while $10,000 invested in the stock market [in 1985] earned a profit of $109,800 [over 20 years], the average mutual fund investor earned a profit of just $29,700. Together, the cost penalty, the timing penalty, and the selection penalty consumed an amazing 73 percent of the profit available simply by buying and holding the stock market itself, leaving the average fund stockholder with a mere 27 percent of the total."
In other words, if investors had invested in the stock market back in 1985, they would have made $109,800 dollars over 20 years. That's including the ups and downs of the market. During the same period, investors who put the same $10,000 in mutual funds made only $29,700.
That's what prompted me to tell the radio interviewer, "That's why mutual funds suck. Not only do they suck 80 percent of the dividends, in come cases they suck another 73 percent of other gains from investors."
I believe my comment was bleeped.
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I agree with what is below, but probably disagree with what many of you will say is the cause and the solution. I believe the average investor is too passive and therefore they get screwed from all directions. The answer is to stop being passive.
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Essentially, John Bogle's position in "The Battle for the Soul of Capitalism" is that investors -- what he calls the true owners of major corporations and mutual funds -- are being robbed blind by corporation and mutual fund company managers. He refers to it as the shift from owner's capitalism to manager's capitalism.
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http://finance.yahoo.com/expert/arti...chricher/23654
Both quotes from the same source.
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Originally Posted by roachboy
fta: babysitter and corporate entities are not similar enough for an analogy leaning on the former to say much of anything about the latter. same problem the alchemists had--they thought that because a and 3 (empty variables referring to substances/objects) were both material that it should follow that one could be converted into the other.
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From my point of view money is money. If I pay a babysitter for a service I want value for what I pay for. If I pay a CEO for a service I want value for what I pay for. What I pay should be nobody's business but mine and the person I pay, babysitter or CEO. If the company is owned by shareholders it is nobody's business accept for the sharholders.
I do understand that there are people in the world who don't like to make financial decisions and actually need someone to tell them what to do, hence the above article illustrating how they get screwed, but at least they didn't have to know any math.