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Avoid highcost investments that eat into your returns from "summary" of The Four Pillars of Investing: Lessons for Building a Winning Portfolio by William J. Bernstein
Investors should steer clear of high-cost investments that devour their returns over time. These investments, such as actively managed mutual funds, have high expense ratios that detract from the overall performance of the portfolio. While it may seem appealing to invest in funds that promise high returns, the fees associated with these investments can quickly erode any gains made. In the long run, high-cost investments can significantly impact the growth of a portfolio. Even a seemingly small difference in expense ratios can translate to substantial losses over time. Therefore, it is crucial for investors to carefully consider the costs associated with any investment before committing their money. One effecti...
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