Barry Ritholz has been in finances for 35 years. Here are some lessons he has learned.
1. You cannot beat the market.
2. Stock picking is a sucker’s game.
3. Fees rob you every year. Cut them as low as possible. No active management.
And more. HIs quick advice is here. Big Picture
More: Ritholz uses a very interesting article by Mark Dowie. First, it tells the story of the advice to Google employees before its IPO. Second, how the author cleaned up his investment portfolio and the people at Aperio who helped him. Third, how passive management began at Wells Fargo in San Francisco in the early 1970s. And how it could not have happened in New York, Boston, Chicago or any other center of finance; it required mavericks. And why is so much money still in wasteful active management?
The Big Picture the article by Mark Dowie. It first appeared in San Francisco Magazine in December, 2006.