What caught my eye this week.
How many more billionaires would there be if the millionaires of yesteryear had embraced passive investing1 [1] and saved themselves a bundle?
That’s the provocative opener in this short video [2] from Robin Powell, the man behind The Evidence-based Investor [3] blog.
Robin’s subject – Victor Haghani of fund manager Elm Partners – makes plenty of sensible points about keeping costs low and investment aims simple. The video is a nice five-minute introduction to the case for passive investing.
However the class warrior in me [4] is rather glad that the super-rich continue to pour billions into expensive hedge funds [5].
If we’re to ease wealth inequality, we certainly don’t want the 1% to care as much as us about getting their fees under 1%!
From Monevator
Make sure you understand your investments – Monevator [6]
From the archive-ator: Creating an emergency fund – Monevator [7]
News
Note: Some links are Google search results – in PC/desktop view these enable you to click through to read the piece without being a paid subscriber.2 [8]
No plans to scrap 1p and 2p coins, says Downing Street – Guardian [9]
Auto-enrollment contributions to be tripled for millions [Search result] – FT [10]
London slump shrinks North-South divide in house prices – Guardian [11]
Bank of England warns Brexit could still rock the City – ThisIsMoney [12]
Over $60 billion wiped off the value of crypto-currencies in 24 hours – CNBC [13]
Phillip Hammond eyes new Patient Capital EIS funds [Search result] – FT [14]
[15]
How the financial crash made global cities unaffordable [Search result] – FT [16]
Products and services
NS&I bumps Junior ISA rate up to 2.5%, but eight providers pay more – Telegraph [17]
The case for prize draws, Premium Bonds, and lottery tickets – ThisIsMoney [18]
Why is antique furniture now so cheap? – Marginal Revolution [19]
Fees and returns: A brief history, from equities to Bitcoin – Bloomberg [20]
There are 21 investment trusts on the new Dividend Hero list – ThisIsMoney [21]
P2P player LendInvest launches retail bond paying 5.375% – Telegraph [22]
The Echo Dot is £10 off at Amazon right now – Amazon [23]
Comment and opinion
The tipping point: When compound interest starts to motor – The Humble Dollar [24]
Growth and value stock indexing are both broken – Bloomberg [25]
A $500 a month allowance saved our marriage – Slate [26]
What real return should (US) bond investors expect? – Charlie Bilello [27]
Infrastructure funds on the road to uncertainty [Search result] – FT [28]
The pros and cons of ‘bucket’ strategies [US but relevant] – Retirement Cafe [29]
Pursuing understanding in a messy, polarized world – Abnormal Returns [30]
Real estate will always be more desirable than stocks [US but relevant] – Financial Samurai [31]
Steve Webb: What’s an acceptable pension pot to retire on? – ThisIsMoney [32]
Into the woods – SexHealthMoneyDeath [33]
When value goes global [Deep factor geek-out] – Research Affiliates [34]
Thinking the unthinkable about corporate and government bonds – The Macro Tourist [35]
Kindle book bargains
Black Edge: Inside Information, Dirty Money, and the Quest to Bring Down the Most Wanted Man on Wall Street by Sheelah Kolhatkar – £1.99 on Kindle [36]
The Spider Network: The Wild Story of a Maths Genius and One of the Greatest Scams in Financial History by David Enrich – £1.99 on Kindle [37]
The Man Who Owns the News: Inside the Secret World of Rupert Murdoch by Michael Wolff – £0.99 on Kindle [38]
Off our beat
Making it look easy is hard work – A Wealth of Common Sense [39]
Inside the booming market for Spotify playlists – The Daily Dot [40]
The man who knew too little – The New York Times [41]
Worms, glorious worms – 3652 Days [42]
And finally…
“When he died in 1525, his fortune came to just under 2 percent of European economic output. Not even John D. Rockefeller could claim that kind of wealth.”
– Greg Steinmetz, The Richest Man Who Ever Lived: The Life and Times of Jacob Fugger [43]
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- Of course they couldn’t, over the time period discussed in the video featured here. Which isn’t just pedantry – it’s very possible that making investing easier and cheaper has reduced the expected returns for equities and other assets going forward. [↩ [48]]
- Note some articles can only be accessed through the search results if you’re using PC/desktop view (from mobile/tablet view they bring up the firewall/subscription page). To circumvent, switch your mobile browser to use the desktop view. On Chrome for Android: press the menu button followed by “Request Desktop Site”. [↩ [49]]