There are ~20,000 securities in Vanguard’s broadest index products, but even this pales in comparison to the 28,700 managed funds, hedge funds, and ETFs globally. Ben Carlson, CFA, Portfolio Manager at Ritholtz Wealth Management commented that “the paradox of choice makes it extremely difficult for investors to wade through this sea of complexity, but it also increases the temptation to make changes to a portfolio. People have a hard time sitting still in the face of this sheer number of choices, even when there are proven benefits from inaction with your investments.” Or as Eugene Fama put it, “there’s one good financial idea every decade or so, and 5 to 10 marketing ideas a week.” In the full article, Ben makes the case for doing less, not more: (VIEW LINK)
Patrick was one of Livewire’s first employees, joining in 2015 after nearly a decade working in insurance, superannuation, and retail banking. He is passionate about investing, with a particular interest in Australian small-caps.