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TVStocks, MusicStocks and Life

The question isn't whether funds are a profitable investment, it is whether they are the most profitable.

Posted by: RogerMore on Feb 24, 15:03 in response to Panda's post RE: Sorry Panda -@RogerMore

A simplistic example:

Let's say you have $1M to spend.  You have only two ways to spend the money.  You can either spend that money on a starbond adjust that will provide a gain of $1 million, or you can spend your $1M invest in a fund that will make the same moviestock investment.

If you invest in the fund, the fund will go up in value by $1 from its investment.  Your gain is 10,000 shares * $1 = $10,000.

If you invest in the starbond adjust, your profits are $1 million.  You make 100 times as much profit from investing directly in the moviestock than you would from investing in the fund.

Funds are profitable.  There are some good managers out there who are growing their funds very quickly.  But the opportunity costs of buying those funds - the missed opportunities on better investments that you could have made  - are enormous.





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