Weekend reading list 2/17

Here is some good weekend reading on the topics of Asset Allocation, Expense Ratios, Compounding Interest and much more:

 

Motley Fool: “100 Startling Facts About the Economy”   

My favorites from the list:

  • 11. Start with a dollar. Double it every day. In 48 days you’ll own every financial asset that exists on the planet — about $200 trillion.

  • 32. Fortune magazine published an article titled “10 Stocks To Last the Decade” in August, 2000. By December 2012, the portfolio had lost 74.3% of its value, according to analyst Barry Ritholtz.

  • 89. According to Vanguard founder John Bogle, the average equity mutual fund gained 173% from 1997 to 2011, but the average equity mutual fund investor earned only 110%, thanks to the tendency to buy high and sell low.

  • 94. According to The Economist, “Over the past ten years, hedge-fund managers have underperformed not just the stock market, but inflation as well.”

  • 95. According to Bloomberg, “Americans have missed out on almost $200 billion of stock gains as they drained money from the market in the past four years, haunted by the financial crisis.

 

Vanguard: Principals for Success

Some great, in-depth information from Vanguard on the affects of trying to time the market and paying high expense ratios:

  • Great examples of how investors and mutual funds tend to “Buy High, Sell Low”.

Vanguard buy high sell low

  • Effects of cost (Expense Ratios) on a portfolio.

Vanguard costs on portfolio

  • The importance of Asset Allocation and Portfolio Balance

Vanguard balance and asset allocation

 

 

 

 

JP Morgan: Guide to the Markets.

 

This one is a from almost 2 months ago, but some great statistics on nearly every aspect of the economy, examples on why you need a diversified portfolio and much much more..

 

JPM - asset allocation portfolio JPM - asset allocation JPM - asset allocation2

 

 

Enjoy the rest of your weekend!

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