Sensible Money
...for the educated investor
“An educated investor is one
who understands the importance of diversification, the
trade-off between risk and return, and how to evaluate an
investment opportunity. An educated investor understands
that if something sounds too good to be true, it likely
is.”
- Cynthia Glasser, Commissioner of the U.S. Securities and
Exchange Commission, April 2006
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"In my view, before they make a purchase, investors deserve
full and clear disclosure of all the fees and costs that
come out of their pockets, either directly or indirectly,
to pay for all the activities related to the operation and
sale of these products, including whether a broker's
recommendation benefits the broker."
- Cynthia Glasser, Commissioner of the U.S. Securities and
Exchange Commission, March 2006
_____________________
"It is my contention that active management does not make
sense theoretically and isn't justified empirically. Other
than that, it's O.K. But it's easy to understand the
allure, the seductive power of active management. After
all, it's exciting, fun to dip and dart, pick stocks and
time markets; to get paid high fees for this, and to do it
all with someone else's money."
- Rex Sinquefield, Dimensional Fund Advisors, 1995
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"Investors… invest on the basis of performance, try as we
might to tell them that past performance is no indication
of future performance."
- Commissioner Paul Atkins, U.S. Securities and Exchange
Commission, April 2006
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"Investment return is far more dependent on investor
behavior than on fund performance.
DALBAR Inc.
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"The discrepancy between a fund's performance and that of
its shareholders can be large. Investors would benefit from
knowing how well they did as opposed to how well their fund
did."
- Barry Barbash, director of the SEC investment management
division, 1997
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