Two Ways to Invest: Think Hard, or Hardly at All
Jack Otter is more than happy to tell you what to do with your money. The twist in his book, “Worth It ... Not Worth It?” is that he sets up a series of binary financial choices and gives you his answer.
Apr 17, 2012
The New York Times
By PAUL B. BROWN
April 7, 2012
WHICH kind of investor are you? (This is a question about style, not proficiency, by the way.)
Do you comb through everything you can get your hands on, looking for the next big idea before anyone else learns about it?
Or do you rely on proven rules of thumb and advice from others?
Whichever approach you take, there is a recently published personal finance book intended just for you. And the two books, just like the investment styles, are radically different — but each has its merits.
Jack Otter, executive editor of CBS MoneyWatch.com, is more than happy to tell you what to do with your money. The twist in his book, “Worth It ... Not Worth It?” (Business Plus, $19.99), is that he sets up a series of binary financial choices — “hot mutual fund or cheap one,” for example — and gives you his answer. In this case, you should choose the cheap fund, he says, because “the single best predictor of a mutual fund’s performance is fees,” meaning that lower fees can point to better performance.
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Apr 17, 2012
The New York Times
By PAUL B. BROWN
April 7, 2012
WHICH kind of investor are you? (This is a question about style, not proficiency, by the way.)
Do you comb through everything you can get your hands on, looking for the next big idea before anyone else learns about it?
Or do you rely on proven rules of thumb and advice from others?
Whichever approach you take, there is a recently published personal finance book intended just for you. And the two books, just like the investment styles, are radically different — but each has its merits.
Jack Otter, executive editor of CBS MoneyWatch.com, is more than happy to tell you what to do with your money. The twist in his book, “Worth It ... Not Worth It?” (Business Plus, $19.99), is that he sets up a series of binary financial choices — “hot mutual fund or cheap one,” for example — and gives you his answer. In this case, you should choose the cheap fund, he says, because “the single best predictor of a mutual fund’s performance is fees,” meaning that lower fees can point to better performance.
Read More