If you’ve ever wondered whether you should stick with index funds or try picking a few individual stocks, Mohnish Pabrai has some thoughts—and they’re worth listening to. In his book Mosaic: Perspectives on Investing, Pabrai dives into this debate with the help of some wisdom from Warren Buffett and Charlie … Read More
Warren Buffett: Don’t Wait Around Trying To Time The Perfect Entry
Back in 2009, during a CNBC Town Hall Event with Bill Gates, Warren Buffett sat down and gave some of the most no-nonsense, practical investment advice you’ll ever hear. It was the aftermath of the financial crisis, panic was everywhere, and people didn’t know where to turn. But Buffett, he … Read More
Terry Smith: The Rise of Passive Investing: A Market Distortion We Can’t Ignore
In the past few years, the financial world has witnessed an undeniable shift: the relentless rise of passive investing. As Terry Smith pointed out at the latest Fundsmith Annual Meeting, more than 50% of global assets under management now reside in so-called passive funds—index funds and ETFs. This phenomenon is … Read More
Terry Smith Explains The “Busy Fool Syndrome”
In his book – Investing for Growth, Terry Smith argues that most fund managers prioritize matching their benchmark rather than outperforming it, leading them to become “index huggers” who underperform after fees. He supports Warren Buffett and John Bogle’s view that low-cost index funds are better for most investors. Smith … Read More
Terry Smith: Passive Investing: The Self-Reinforcing Momentum Strategy
In his latest letter to shareholders, Terry Smith explained why passive funds are effectively momentum strategies that create a self-reinforcing cycle, driving up large-cap stocks. In late 2023, passive investments via index funds surpassed active funds in Assets Under Management (AUM), now exceeding 50%. During the Dotcom boom, only 10% … Read More