When I Grow Up, I want to be an Investment Manager
Perhaps you may have heard this recently from a cute child, wide eyed and innocent basking in the desire for untold riches and insurmountable power. But I never have. Few people watch Wall Street (starring Michael Douglas and Charlie Sheen) and want to be either character. The ugliness of their greed is unmatched nay for the recent mortgaged backed security crisis of 2003-2007.
However I’ve always liked the idea of a) picking stocks and b) choosing the ones that do better than the rest. To say that I’m experienced is untrue. To say that I’ve had great luck in the past is also untrue. Most people (myself included) are better off buying an index fund (TD has some great ones like TD216 or Barclays XIU). The cost is small and they usually beat paid money managers consistently simply by the difference in fees.
Now I won’t be a REAL money manager. Since I’m not registered with the SEC, the OSC nor the Mutual Fund Dealer’s Association, I’m not allowed to claim anything. I can’t charge for managing money. Nor would I. Keep your money. I just want to be right.
Also keep in mind that most of my money is in index funds spread around a few sectors and geographies. No more than 15% of my portfolio will find its way into this “Enterprising Investor” mix. I always allow for the possibility that I’m wrong.
Personally I’ve seen two significant bear markets and a number of “corrections”. I’m patient and cautious. This isn’t Mad Money – this is retirement savings. I’ve learned quite recently that even well-diversified index funds can take on stomaching churning losses. It may take me years to get back to where I was – blindly following the index strategy has its risks as well.
For the moment, I’ll cover only one eye.
