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March 2, 2013
The Capitalist Toolbox
Chapter 9: Put Your Money In A Hedge Fund
HOW TO REALLY RUIN YOUR LIFE AND PORTFOLIO (by Ben Stein)
COMMENTARY/Michael Neviaser
The idea sounds good. Making money by owning stocks or by selling them short (google that). Sharp needle in that balloon is that most hedge funds seldomout perform their target indices.
Unless you aspire to become an active investor and want to devote significant time and energy to research (which can be very rewarding and fun, too), I urge you to save yourself time, energy, fees, and commissions by investing in ETFs that cover:
· America
· International
· BRIC – Brazil, Russia, India, China
· Whatever else gets a decent return and additional diversity of your portfolio
You can vary ETFs by size of the companies in the underlying index. My wife’s retirement account has mutual funds in conservative growth, small cap (google that), and a couple others.
ETFs, symbols GLD and SLV, can be used to own precious metals. While I was in the hospital for ten months, my ETFs were extremely profitable. GLD rose 60% and SLV doubled. Owning coins or actual metals presents storage and insurance problems, not to mention the problem of moving your loot.
ETFs are God’s gift to investors.
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