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Bill Longstreet

It is all in the fees

Posted on February 26, 2013 Facebooktwittergoogle_pluspinterestlinkedinrss
There are two factors that drive investment returns 1. The assets you buy and 2. The fees you pay for those assets.  It is not always certain that the stocks, bonds or property that you have bought will make you money.

Hopefully you are working with a good advisor that knows what they are doing, but even then no body has a perfect track record when it comes to picking investments.  Even the great Warren Buffet has made his share of mistakes.


There is one certainty when it comes to investing, if you are able to reduce what you pay in fees it will have an absolute positive impact on your investment returns.  The below link, to the article “Buffet Wins with An Index Fund”, discusses exactly this point.  Buffet bet a set of hedge funds that he could beat their returns over a 10 year period by simply investing into a passively managed ETF and is easily winning.  It is not that the hedge fund managers are bad at what they do, it is the fees that they charge that are dragging down the returns.

So the next investment you enter into take a careful look at the fees.



Bill Longstreet has been a financial advisor since 2003 and prior to this were a institutional business development director, specializing in fixed income and foreign exchange markets. Bill has a Master in Business Administration with a concentration in Finance (1999) from the Olin School of Business at Washington University in St. Louis and am a candidate for the CFP (Certificate Financial Planner) qualification. He also holds a Bachelor of Arts with a Major in Economics from Denison University. In his last position before joint Caterer Goodman oversaw $350 million in client funds across a range of currencies and risks profiles.



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