This is a redo of an episode we didn’t release two weeks ago…
Someone wrote in and asked Ethan why he didn’t talk about ETFs in his episode on Index Funds. Here’s Ethan’s response.
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Wine drank on today’s episode:
Vin-Sanity Chardonnay 2004
Links from today’s episode:
Mutual Funds Suck – Episode #12
In today’s episode Ethan Bloch talks about the three different online brokerages he believes have the best Index Fund offerings.
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Link’s mentioned in today’s episode:
Ultimate Index Fund Resource
Written by the father of the worlds first Index Fund, The Little Book of Common Sense Investing is responsible for many of the views Ethan Bloch holds in regards to Index Funds and Mutual Funds.
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Book reviewed on today’s episode:
The Little Book of Common Sense Investing By John C. Bogel
What are Index Funds and why should you care? Hit play for answers.
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Books mentioned on today’s episode:
The Little Book of Common Sense Investing by John Bogel
Stocks for the Long Run, 4th Edition by Jeremy Siegel
The Intelligent Investor by Benjamin Graham
“Most of us have no chance of being as good as the average in any pursuit that others practice for hours to hone their skills. Anyone, however can be as good as the average in the stock market with no practice at all.” — JeremySiegel, ‘Stocks for the Long Run’
The passive investor is the ideal investment approach for most of the people reading this. The passive investor will guarantee themselves average returns by investing in Index Funds and therefore will never do worse then the market; but also never do better.
Considering many retail investors do worse then the market average, this is a highly attractive approach. However, Index investing lacks the sexiness of buying individual stocks and due to this lack of sexiness many retail investors feel that in order to be considered ‘cool’ they should avoid the un-sexy Index funds and buy the sexy individual stocks; pure folly.
Sadly we’ve all had at least one friend, cousin, brother or sister brag about how they “day trade“, projecting a huge smile while saying this proudly; or a huge frown, if they’ve already experienced its pitfalls. That being said, when it comes to investing leave your high school mentality at the door and just worry about building wealth.
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