From dumb money to smart money in two moves

๐—ง๐—ต๐—ฒ ๐—บ๐—ผ๐˜€๐˜ ๐—ถ๐—บ๐—ฝ๐—ผ๐—ฟ๐˜๐—ฎ๐—ป๐˜ ๐—ฟ๐—ฒ๐˜๐˜‚๐—ฟ๐—ป๐˜€ ๐—ถ๐—ป ๐—น๐—ถ๐—ณ๐—ฒ ๐—ฐ๐—ผ๐—บ๐—ฒ ๐—ณ๐—ฟ๐—ผ๐—บ ๐˜๐—ต๐—ฒ ๐—ฐ๐—ผ๐—บ๐—ฝ๐—ผ๐˜‚๐—ป๐—ฑ๐—ฒ๐—ฑ ๐—ฒ๐—ณ๐—ณ๐—ฒ๐—ฐ๐˜๐˜€ ๐—ผ๐—ณ ๐—ผ๐˜‚๐—ฟ ๐—ถ๐—ป๐˜ƒ๐—ฒ๐˜€๐˜๐—บ๐—ฒ๐—ป๐˜๐˜€ ๐—ผ๐˜ƒ๐—ฒ๐—ฟ ๐˜๐—ถ๐—บ๐—ฒ, ๐˜„๐—ต๐—ฒ๐˜๐—ต๐—ฒ๐—ฟ ๐—ถ๐—ป ๐—ผ๐˜‚๐—ฟ ๐—ฐ๐—ฎ๐—ฟ๐—ฒ๐—ฒ๐—ฟ๐˜€, ๐—ต๐—ผ๐—ฏ๐—ฏ๐—ถ๐—ฒ๐˜€, ๐—ฟ๐—ฒ๐—น๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐˜€๐—ต๐—ถ๐—ฝ๐˜€, ๐—ผ๐—ฟ ๐—ณ๐—ถ๐—ป๐—ฎ๐—ป๐—ฐ๐—ฒ๐˜€.ย 

Isn’t one of our motivators to work the money we get for itโ“
Then let’s also have our money work harder for usโ—

Your edge over Wall Street (aka โ€œThe Smart Moneyโ€) is time ๐Ÿ•–:
You (aka “The Dumb Money”) are not in a race & do not have to explain to your shareholders every quarter how your investments have performed (maybe you have to explain it to your spouse though).


๐— ๐—ผ๐˜ƒ๐—ฒ 1๏ธโƒฃ – ๐—–๐—ต๐—ฎ๐—ป๐—ด๐—ฒ ๐˜๐—ต๐—ฒ ๐˜๐—ถ๐—บ๐—ฒ๐˜€๐—ฐ๐—ฎ๐—น๐—ฒ ๐—ผ๐—ณ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—น๐—ถ๐—ณ๐—ฒ & ๐˜†๐—ผ๐˜‚ ๐—ฐ๐—ต๐—ฎ๐—ป๐—ด๐—ฒ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—น๐—ถ๐—ณ๐—ฒ. ๐—ฆ๐˜๐—ฎ๐—ฟ๐˜ ๐—ฒ๐—ฎ๐—ฟ๐—น๐˜† ๐˜„๐—ถ๐˜๐—ต ๐˜๐—ต๐—ฎ๐˜. ๐—ง๐—ต๐—ฒ๐—ป ๐˜€๐—ต๐˜‚๐˜ ๐˜‚๐—ฝ & ๐˜„๐—ฎ๐—ถ๐˜.

โ€œ๐˜–๐˜ท๐˜ฆ๐˜ณ ๐˜ฅ๐˜ฆ๐˜ค๐˜ข๐˜ฅ๐˜ฆ-๐˜ญ๐˜ฐ๐˜ฏ๐˜จ ๐˜ต๐˜ช๐˜ฎ๐˜ฆ ๐˜ฉ๐˜ฐ๐˜ณ๐˜ช๐˜ป๐˜ฐ๐˜ฏ๐˜ด, ๐˜บ๐˜ฐ๐˜ถ๐˜ณ ๐˜ช๐˜ฏ๐˜ท๐˜ฆ๐˜ด๐˜ต๐˜ฎ๐˜ฆ๐˜ฏ๐˜ต ๐˜ฑ๐˜ฆ๐˜ณ๐˜ง๐˜ฐ๐˜ณ๐˜ฎ๐˜ข๐˜ฏ๐˜ค๐˜ฆ ๐˜ธ๐˜ช๐˜ญ๐˜ญ ๐˜ฎ๐˜ข๐˜ช๐˜ฏ๐˜ญ๐˜บ ๐˜ฃ๐˜ฆ ๐˜ฅ๐˜ฆ๐˜ณ๐˜ช๐˜ท๐˜ฆ๐˜ฅ ๐˜ง๐˜ณ๐˜ฐ๐˜ฎ ๐˜ฉ๐˜ฐ๐˜ธ ๐˜บ๐˜ฐ๐˜ถ ๐˜ฉ๐˜ข๐˜ฏ๐˜ฅ๐˜ญ๐˜ฆ ๐˜ค๐˜ฐ๐˜ณ๐˜ณ๐˜ฆ๐˜ค๐˜ต๐˜ช๐˜ฐ๐˜ฏ๐˜ด, ๐˜ฃ๐˜ฆ๐˜ข๐˜ณ ๐˜ฎ๐˜ข๐˜ณ๐˜ฌ๐˜ฆ๐˜ต๐˜ด & ๐˜ฎ๐˜ข๐˜ณ๐˜ฌ๐˜ฆ๐˜ต ๐˜ค๐˜ณ๐˜ข๐˜ด๐˜ฉ๐˜ฆ๐˜ด.โ€ โ€“ ๐˜‰๐˜ฆ๐˜ฏ ๐˜Š๐˜ข๐˜ณ๐˜ญ๐˜ด๐˜ฐ๐˜ฏ



With investing in equities there is this little annoying challenge of finding the needle in the haystack. We just don’t know enough to find those. But we can invest in the haystack (or even the entire barn) by investing in broad-based ETFs.

โ–ถ ETFs guarantee you market returns minus a small fee. ๐Ÿ‘
โ–ถ Actively managed funds guarantee you large fees plus nothing else. ๐Ÿ‘Ž


๐— ๐—ผ๐˜ƒ๐—ฒ 2๏ธโƒฃ โ€“ ๐—ฆ๐—ฎ๐˜ƒ๐—ฒ ๐˜๐—ถ๐—บ๐—ฒ & ๐˜„๐—ถ๐—น๐—น๐—ฝ๐—ผ๐˜„๐—ฒ๐—ฟ ๐˜„๐—ถ๐˜๐—ต ๐—ฎ๐—ป ๐—ฎ๐˜‚๐˜๐—ผ๐—บ๐—ฎ๐˜๐—ฒ๐—ฑ ๐—ฟ๐—ฒ๐—ด๐˜‚๐—น๐—ฎ๐—ฟ ๐˜€๐—ฎ๐˜ƒ๐—ถ๐—ป๐—ด๐˜€ ๐—ฝ๐—น๐—ฎ๐—ป ๐—ถ๐—ป ๐—ฏ๐—ฟ๐—ผ๐—ฎ๐—ฑ-๐—ฏ๐—ฎ๐˜€๐—ฒ๐—ฑ ๐—˜๐—ง๐—™๐˜€.

โ€œ๐˜ˆ ๐˜ธ๐˜ฐ๐˜ณ๐˜ญ๐˜ฅ ๐˜ฆ๐˜ฒ๐˜ถ๐˜ช๐˜ต๐˜บ ๐˜ช๐˜ฏ๐˜ฅ๐˜ฆ๐˜น ๐˜ต๐˜ณ๐˜ข๐˜ค๐˜ฌ๐˜ฆ๐˜ณ ๐˜ช๐˜ด ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฐ๐˜ฏ๐˜ญ๐˜บ ๐˜ฆ๐˜ฒ๐˜ถ๐˜ช๐˜ต๐˜บ ๐˜ช๐˜ฏ๐˜ท๐˜ฆ๐˜ด๐˜ต๐˜ฎ๐˜ฆ๐˜ฏ๐˜ต ๐˜ข ๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ๐˜ข๐˜ญ ๐˜ช๐˜ฏ๐˜ท๐˜ฆ๐˜ด๐˜ต๐˜ฐ๐˜ณ ๐˜ฆ๐˜ท๐˜ฆ๐˜ณ ๐˜ฏ๐˜ฆ๐˜ฆ๐˜ฅ๐˜ด ๐˜ต๐˜ฐ ๐˜ฐ๐˜ธ๐˜ฏ.โ€ โ€“ ๐˜“๐˜ข๐˜ณ๐˜ด ๐˜’๐˜ณ๐˜ฐ๐˜ช๐˜ซ๐˜ฆ๐˜ณ, ๐˜๐˜ฏ๐˜ท๐˜ฆ๐˜ด๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜‹๐˜ฆ๐˜ฎ๐˜บ๐˜ด๐˜ต๐˜ช๐˜ง๐˜ช๐˜ฆ๐˜ฅ


๐™‹๐™–๐™ง๐™–๐™™๐™ค๐™ญ๐™ž๐™˜๐™–๐™ก๐™ก๐™ฎ, ๐™ฌ๐™๐™š๐™ฃ โ€˜๐™™๐™ช๐™ข๐™—โ€™ ๐™ข๐™ค๐™ฃ๐™š๐™ฎ ๐™–๐™˜๐™ ๐™ฃ๐™ค๐™ฌ๐™ก๐™š๐™™๐™œ๐™š๐™จ ๐™ž๐™ฉ๐™จ ๐™ก๐™ž๐™ข๐™ž๐™ฉ๐™–๐™ฉ๐™ž๐™ค๐™ฃ๐™จ, ๐™ž๐™ฉ ๐™˜๐™š๐™–๐™จ๐™š๐™จ ๐™ฉ๐™ค ๐™—๐™š ๐™™๐™ช๐™ข๐™—.ย 


Investing regularly in index funds has turned much of the investing public from the โ€œdumbโ€ money to the smart money while the professionals have underperformed for years.ย 

Active funds underperformed by benchmarks over 10 yrs

What do you think about the success rate of these two moves?

โ€œThe reality is that we all have the brainpower to be successful investors. But whether we have the willpower is a different matter, altogether.โ€ โ€“ David Kuo

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