Brief summary:
1. Spend less than you earn and consistently invest the savings in low-cost index funds.
2. 80 to 90 percent of active managers underperform the indices.
3. Out of the 10 to 20 percent who outperform, only 1 in 200 outperforms the indices consistently by more than 3% a year.
4. Chances that an individual investor will find such a winning manager are less than 1% and this game is not worth playing.
5. Mohnish Pabrai likes Vanguard and suggests splitting the money equally between S&P 500, Russel 2000 and Emerging Market indices.
6. For investors in their 20s, bonds are not necessary.
This from one of the value investing gurus? I wonder why he did not offer any value investing tips or tips on using a check list.
Here's the video on Forbes.com:
1. Spend less than you earn and consistently invest the savings in low-cost index funds.
2. 80 to 90 percent of active managers underperform the indices.
3. Out of the 10 to 20 percent who outperform, only 1 in 200 outperforms the indices consistently by more than 3% a year.
4. Chances that an individual investor will find such a winning manager are less than 1% and this game is not worth playing.
5. Mohnish Pabrai likes Vanguard and suggests splitting the money equally between S&P 500, Russel 2000 and Emerging Market indices.
6. For investors in their 20s, bonds are not necessary.
This from one of the value investing gurus? I wonder why he did not offer any value investing tips or tips on using a check list.
Here's the video on Forbes.com:
