What Are You Actually Paying For? - Page 2
I have previously written about the difference between betting and investing and I can't understand why people 'bet' with their money, or worse yet, let other people bet with it, rather than invest it. Secondly, Bill and his active management friends are all paid 'too well' for the privilege of taking other people's money and 'betting' with it.
So what exactly are you paying for?
They would argue that you are paying for their expertise and ability to foresee the future and to select the right asset class/stock/bond etc.... that will produce a return better than the average of said asset class/stock market/bond market and yet he admitted that “ it was my/our mistake in thinking that the US economy can chug along at 2 percent real growth rates", and was defended as stated above by the fact that things changed quicker than anticipated.
For this, they are paid 'too well'.........so if they can't anticipate what is going to happen it really does make you wonder what you are actually paying for.