[Guide] Intelligent Investing - Page 2

On June 06 2009 18:11 TheFlashyOne wrote:
heavily copy-pasted, but still a good collection

On June 06 2009 17:22 InsideTheBox wrote:
Your assessment of hedge funds, fund of funds, ETFs, etc is extremely biased. It's frequent practice for the manager/CIO of a hedge fund to invest his own capital into the fund that he's running. Even if this were not the case, there's plenty incentive (read millions of dollars) for managers to try to "beat the market." If I'm a multimillionaire, and not extremely risk averse, hedge funds may be a smart investment given some research.

Just as a note; the hedge fund industry in general is up about 9% YTD.

On June 07 2009 04:04 kewlsunman wrote:


I wrote this entirely myself. I find it offensive that you would accuse me of plagiarism without any concrete evidence.

[Note: There’s a very important reason why it’s not precisely $200—the time value of money. Think about it this way, would you rather have $100 now or $100 in a year from now? If you said it doesn’t matter, then you’re forgetting that you could potentially put your $100 now in a savings account, in an index fund, in a treasury bond, or any number of other investments which would earn you a risk-free amount of interest. Generally the long-term Treasury bond is considered a risk-free rate, and that earns about 10% a year, meaning that $100 now is worth at least $110 in a year from now. Conversely, $100 a year from now, discounted by the 10% interest rate would give it a present value of only about $91. (PV = FV/(1+r)^n; where r = interest rate and n = number of years)

On June 07 2009 04:34 kewlsunman wrote:
What you say is true, and there certainly are some great hedge funds out there that consistently outperform the market. However, I do have a few rebuttals:

1) There aren't many multimillionaires on TL.net :D

On June 07 2009 05:43 psion0011 wrote:

Wrong.

I wish you'd do more research before making these kind statements.