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Avoid high fees from "summary" of The Only Investment Guide You'll Ever Need, Revised Edition by Andrew Tobias
One thing to avoid is high fees. If an investment has a 5 percent front-end load, for instance, you start off 5 percent in the hole. Plus, you're paying for the privilege of investing in a fund that's very likely to do no better than average. So you're actually worse than average. If you invest $10,000 in a fund with a 5 percent front-end load, you immediately lose $500. If you invest that $9,500 in a fund that goes on to earn 10 percent a year, you'd have $17,220 after ten years. If you invest the full $10,000 in a no-load fund that also earns 10 percent a year, you'd have $17,620. That's $400 more. If you were to invest the money in a fund with a 2 percent annual expense ratio, you'd lose another 20 percent of your return, or $400 a year on that $10,000 investment. After 10 year...
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