Tag Archives: Index Funds

How to lose a $1million bet (and also how to compare apples and oranges)

Ted Seides, CIO of Protege Partners, explains why he’s losing his bet against Warren Buffett. The bet, for $1million, was over which would outperform over 10 years – an S&P500 index fund (Buffett’s choice) or a fund of hedge funds (i.e., what Protege Partners does). Now I want to point out, at the outset, that […]

Swedroe on GNMAs for your Bond Allocation

Always worth reading, here’s Swedroe’s recent piece about whether or not to use GNMA (mortgage-backed securities) as your bond allocation: http://moneywatch.bnet.com/investing/blog/wise-investing/gnmas-you-can-do-better/2887/ Some things he notes: A 60/40 portfolio with intermediate treasuries has had a higher return and lower volatility than a similar portfolio with GNMAs GNMAs have a higher correlation with equities (which explains a […]

Mutual Funds a ripoff?

Maybe that’s pushing it a little bit, but the fact is that the vast majority of mutual funds, mostly actively managed, add more in costs than they do in value.  A net loss to the investor compared to what he should be paying. David Swenson, chief investment officer at Yale University (he manages their huge […]