Saturday’s Quote
If you can actually count your money, then you are not really a rich man. - John Paul Getty
3 Tips for Mutual Fund Millions
3 Tips for Mutual Fund Millions
1. Keep it cheap. All funds charge an annual fee called an expense ratio. But some funds charge more than others. Interestingly, there’s zero correlation between the size of the expense ratio and the degree of market outperformance. For example, AIM Charter B (BCHTX) charges 2.01% annually but has lost to the market over the past five years. CGM Focus (CGMFX), by contrast, charges just 1.02% but, thanks to top holdings like MEMC Electronic Materials (NYSE: WFR) and Las Vegas Sands (NYSE: LVS), has walloped the S&P by more than eight percentage points per year since 2002.
2. Say no to loads. You don’t need sales charges, known as loads, either. Once again I refer you to AIM Charter B. Its positions in Coca-Cola (NYSE: KO) and ExxonMobil are easily duplicated by cheapskate market-beater Fidelity Contrafund (FCNTX).
3. Cut the fat. More insidious are funds that are no longer accepting new money but still charge a 12b-1 fee to cover marketing expenses. MainStay Equity Index (MCSEX), which has large positions in Pfizer (NYSE: PFE) and Altria (NYSE: MO), is a prime example. It charges 0.25% annually for promoting a fund you can’t buy and which, after expenses, has narrowly lost to the market since 2002.
Time to Buy Biotech?
Summer Sets Up Second Shot at Biotech Stocks
One of my favorite biotech stocks, which is not listed in the article, is AMGN. I think AMGN is looking very attractive right now and it should be able to show great returns once biotech stocks are back in favor.
Sunday’s Quote
If all economists were laid end to end they would not reach a conclusion. - George Bernard Shaw
Saturday’s Quote
I never knew how poor I was until I started making money. - Michael
Steal These Stocks
SLB and WFR look like good buys. I am already heavy in energy stocks, so I don’t think I’ll buy SLB. I’ll consider a position in WFR.
Can An Unexperienced Person Beat The Market?
A woman who has never bought a share of stock is the likely winner of CNBC’s stock-picking contest.
Read more on this waitress who is picking great stocks.