During an interview on Bloomberg radio this morning, the person being interviewed (whose name I didn’t get) made a statement that I have written about before in a previous post. He very clearly said that if a person is patient and willing to wait 10-15 years then the Vanguard S&P Index Fund ETF (VOO) and the Vanguard Total Stock Market Index Fund ETF (VTI) would beat any Hedge Fund. This is despite the high paid and very smart people who work at the Hedge Fund and their expensive and high end algorithms and computers. Those high expenses were actually the very reason that the Hedge funds would lose.
Warren Buffet actually proved this with a bet that last ten years. By the end of the 10 year period it wasn’t even close. The Vanguard model of keeping fees down, keeping investments simple, and betting on the United States is a winning strategy.
And, I had to laugh at the comment about having to be patient about investing for 10-15 years to make this work. That is not a very long time in the scale of an investing time horizon. Most people can expect to invest at least twice that long.
Also, the mantra here at this blog is to remain patient and disciplined. It was really nice to hear a “Wall Street” guy reinforce what I believe and have been trying to share to help others be successful!
As always, if you are looking for a gift for the young reader in your life, you can find some great children’s books on Amazon. Just go to these links The Desert Fairies of Oylara, The Rainforest Fairies of Oylara, and The Artic Fairies of Oylara and order them.
Additionally, I came across this very cool podcast on Spotify that everyone should check out called Gen X Dad and his Gen Z Teens. Entertaining!
Finally, check out some pretty cool music on YouTube if you have a few minutes: Introduction , Mosh, Smoke, Watch Out , and First Day Out. Enjoy!
Patient and Disciplined Saving 