The Croupiers take
Thursday 1 April 2010
Some of the most poignant information to help investment decisions is available but unless you know what you are looking for, it is very hard to find, not least to appreciate its impact.
To make it a little easier, we attach an article which appeared in the FT and Jonathan Davis’s Web Site He has been analysing investment markets for more than 30 years.
The contents are simply Costs matter. Yet by and large investors are not fully aware of investment costs. Just one snippet from the article “In their Global Investment Returns Yearbook, Dimson, Marsh and Staunton estimate the long run cost of holding equities through funds to be in the region of 3% per annum. At that rate costs will eat up 27% of your starting capital over 10 years and almost half the long run annualised historical equity risk premium.”
Every investor’s response should be: Is this true? Why hasn’t anyone told me this before? I am staggered at the costs! By and large such responses are few and far between. Why is that?
Actually it gets worse. Alan Millers analysis in the enclosure explains.
Yet, the reason such information remains off the front page is that stockbrokers and/or financial advisers do not want to promote it. More often than not they are selling a product for these fund management institutions. In my blog I often use the term “Turkeys would not vote for Christmas”. It is not in the interest of these people to tell you as it goes against their pay cheque.
Moreover, these firms will have numerous reasons to justify the costs they charge, but however many reasons are given, they do not cut the costs to the investor.
We are keen to promote the truth about investing. The Croupiers take can be reduced and it will make a difference over time. By helping investors educate themselves about the major issues means a better investment experience can be achieved. Finally, if you need advice, talk to someone that offers unequivocally transparent and conflict- free advice - we are one of very few firms in the UK that provide such advice. I do not know any other firm in Shropshire that can make this claim.
Perhaps the aces and kings should be in the hands of the investor not the croupier!
posted by Murray Round Wealth Management @ 10:42,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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