When Google went public, the management feared that many of their employees who would soon be new multimillionaires, would be preyed upon by financial planners offering bad advice. So the management put together a financial class for its employees that included the most revered names in investment theory like Bill Sharpe, Burton Malkiel and John Bogle. The lesson that they taught:

Put your savings into some indexed mutual funds, which will make you just as much money (if not more) at much less cost by following the market’s natural ebb and flow, and get on with building Google.

 

Submitted: Feb 18, 2008    Views: 485    Comments: 1    Likes: 2   


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Eppy
(Unregistered)

The end of the article is correct. We don't invest in index funds because we want to beat the market, not match it. Investing is just like gambling. No one goes to the casino wanting to come back even.

Posted: Feb 19, 2008



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