Surprising reaction from Jonathan william Mikula about stocks investment

When is an employee of a company and we want to invest in stocks can be quickly want to turn to discretionary management or an investment fund selection and Sicav precisely by a lack of time. The first mistake of the investor is often want to choose his titles or even live and all the while knowing that he did not have time to follow them. It is placed directly buy & hold without knowing whether this investment strategy will stick to its financial objectives. Above all it will never have the time to question and let live heavy losses.

So most employees for lack of time are turning to investment funds or mutual funds and there is no harm in that. The only evil that can be said is that by doing so the investor will never do better than its benchmark in terms of performance. Jonathan william Mikula So we will talk about 5 to 10% performance per year on average, which is very respectable. But the investor will never have the opportunity to beat the market precisely because managers share the money they manage can not get out as easily as their particular positions. jonathan william Mikula They often do little better than the benchmark because they are very active, more of a strategy of buy & hold the least risk but suddenly limiting performance.

Investors when they want to invest in stocks but without taking risks (look for the error), arrive to sleep soundly by giving the illusion of protection by diversifying their portfolio. It is thus seen as often portfolios with more than 30 values ​​but often the weights are not equivalent and above the lines are often less than 1000 euros each, the share of transaction costs is therefore already disabling. Moreover diversifying your portfolio, if you smooth indeed the risk, you also smooth performance and therefore with a diversified portfolio you do not will beat the market.

Location

California

Disciplines

• Economics