EmptorMaven

The always sensible David Swensen has an interview with the Yale Alumni Magazine that everybody with capital should read. (He has written two books on investing: One for institutional investors, and one for individual investors.)  Naturally, it concords with my general investing advice here.  He slams the actively managed mutual fund industry (“The mutual fund industry is not an investment management industry. It’s a marketing industry.”) and urges individual investors to focus on index investing.

The investor is bombarded with staggering amounts of information, staggering amounts of stimuli that are designed to get the investor to buy and sell and trade, to do exactly the wrong thing, to create excessive profits for these intermediaries that aren’t acting in the investor’s best interests.

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