2012年11月27日
...
I know it is pretty old, but still worth re-visiting.
Overheard on the Goldman Sachs Elevator @GSElevator
#1: She’s only about 3 weeks of anorexia away from looking hot.
#2: Maybe 4.
#1: Groupon… Food stamps for the middle class.
#1: A guy came up to me at the gym and asked me what event I was training so hard for. Life, motherf#cker.
#1: Walking around the protesters outside makes me feel like how a black guy must feel in the gym shower.
#1: You’re going to Hell in just about any religion.
#2: First class, baby…
#1: Bareback is the new 3rd base.
#1: Money might not buy happiness, but I’ll take my f#cking chances.
#1: Almost time for children to learn a valuable life lesson. Santa loves rich kids more.
#1: Black Friday is the Special Olympics of capitalism.
#1: Getting laid off from Goldman is like being traded by the Yankees. You’ll probably still make millions, but it’s just not the same.
Overheard on the Goldman Sachs Elevator @GSElevator
#2: Maybe 4.
#1: Groupon… Food stamps for the middle class.
#1: A guy came up to me at the gym and asked me what event I was training so hard for. Life, motherf#cker.
#1: Walking around the protesters outside makes me feel like how a black guy must feel in the gym shower.
#1: You’re going to Hell in just about any religion.
#2: First class, baby…
#1: Bareback is the new 3rd base.
#1: Money might not buy happiness, but I’ll take my f#cking chances.
#1: Almost time for children to learn a valuable life lesson. Santa loves rich kids more.
#1: Black Friday is the Special Olympics of capitalism.
#1: Getting laid off from Goldman is like being traded by the Yankees. You’ll probably still make millions, but it’s just not the same.
2012年11月26日
2012年11月15日
Fund Investment - Fee
Expense ratio:
ETF - 1%
Fund - 1-5%
Hedge Fund - 2%+20%
We can view the expense of ETF as pure adminstration fee (custodian, rental, back-office etc.). No payment for investment intelligence.
The 2% fee for hedge fund is of the same nature as above. Except, of course, the high-end hedge funds inevitably have higher admin fees (rental in class A buildings, promotion dinners at clubs, business trips)., which is also justifiable.
Whether the 20% performance is suitable for investors depends on your portfolio, your need, and your investment philosophy. No comment here.
Now, comes the main topic today.
Traditional funds commonly invest 90% in broad index stocks and the rest on a discretional basis. That means, the active portion of investment, which generates alpha, is only 10%. But it charges much higher fees than ETF. This is call "dead weight".
Clearly, traditional funds are not a good choice for ordinary investors in terms of fee charged, regardless of the headache in the process of selecting funds.
ETF - 1%
Fund - 1-5%
Hedge Fund - 2%+20%
We can view the expense of ETF as pure adminstration fee (custodian, rental, back-office etc.). No payment for investment intelligence.
The 2% fee for hedge fund is of the same nature as above. Except, of course, the high-end hedge funds inevitably have higher admin fees (rental in class A buildings, promotion dinners at clubs, business trips)., which is also justifiable.
Whether the 20% performance is suitable for investors depends on your portfolio, your need, and your investment philosophy. No comment here.
Now, comes the main topic today.
Traditional funds commonly invest 90% in broad index stocks and the rest on a discretional basis. That means, the active portion of investment, which generates alpha, is only 10%. But it charges much higher fees than ETF. This is call "dead weight".
Clearly, traditional funds are not a good choice for ordinary investors in terms of fee charged, regardless of the headache in the process of selecting funds.
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