Audio available in app
Look for low expense ratios from "summary" of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition) by Burton G. Malkiel
When selecting investments, it is crucial to consider the expense ratio associated with each option. This ratio reflects the percentage of a fund's assets that are used to cover operating and management costs. In other words, it represents the amount of money that investors will lose to fees each year. While this may seem insignificant at first glance, even a small difference in expense ratios can have a significant impact on an investor's returns over time. Investors should look for low expense ratios when choosing funds. By doing so, they can minimize the amount of money that is taken out of their investment returns. For example, if two funds have similar performance but one has a higher expense ratio, the fund with the lower expense ratio will likely provide higher net returns to investors. This is because less of the fund's assets are being used to cover fee...
Similar Posts
Invest in yourself and your skills
To get ahead in life, you need to invest in yourself and your skills. This means putting time, effort, and sometimes money into...
Understand mutual funds
Mutual funds are a pool of money collected from many investors to invest in stocks, bonds, or other assets. When you invest in ...
Speculative investing is risky
Investing in speculative securities is a gamble. You are betting that the securities you select will outperform the market. It ...
Focus on intrinsic value, not market price
The intelligent investor must always focus on intrinsic value, not market price. This principle is paramount in achieving long-...
Focus on understanding the business rather than shortterm price fluctuations
Fisher emphasizes the importance of focusing on understanding the business itself rather than being swayed by short-term price ...
Rebalance your portfolio regularly
Regularly rebalancing your portfolio is a crucial step in maintaining your investment strategy. By periodically reviewing and a...
Stay ahead of the curve by anticipating market trends
To succeed in the world of finance and investing, one must always be on the lookout for emerging market trends. By staying ahea...
Understanding the factors that influence stock prices is important
To be successful in the stock market, it is crucial to have a deep understanding of the various factors that can influence stoc...
Active management strategies can outperform passive strategies
Active management strategies have the potential to outperform passive strategies in the investment management industry. This co...
Keep learning about investing
Learning about investing is an ongoing process that requires dedication and commitment. It is essential to stay informed about ...