For decades I have been arguing against the worthless fee-based advice of the activist investment industry and argued instead that Aussies without a lot of financial market expertise should, in the main, invest in close to no-load mutual funds such as Argo Investments, Australian Foundation Investment Company and Milton Corporation. Management fees are close to zero and these firms track a broad portfolio of quality stocks with returns that outperform those of the expensive stock pickers. I picked up the basis for vthis view from Burton Malkiel’s A Random Walk Down Wall Street which is the best book on investment I have ever read. Its now in its 10th edition having first been published 40 years ago.
Over at Greg Mankiw’s blog is an erudite interview with Malkiel. Please watch it. (123)