LIC & LIT LIC's v ETF's which is better and why

Discussion in 'Shares & Funds' started by 2935, 3rd Oct, 2016.

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  1. Redwing

    Redwing Well-Known Member

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    I like Rick Ferri's Education of an Investor (edited version below)

    1. Born in darkness;
    2. Finds enlightenment;
    3. Over-complicates everything;
    4. Embraces simplicity.

    You'll be a better investor when you forget about your investments, providing you pick decent ones from the start.

    Once you have become enlightened to low-cost investing, and in particular broadly diversified index funds, select a stock and bond allocation for your needs, choose a few index funds to represent those broad asset classes (or a balanced fund that does it for you), implement the portfolio and go do something else for a few years.

    Do not agonize over finding an optimal asset allocation, or picking the optimal fund in each asset class, or thinking you're missing something by not including complicated investment strategies promoted by others (usually for their benefit). That's all a waste of time and money.

    The best investors I've met in my 30 years in the business are those who did nothing after picking a few low-cost index funds, except continuing to feed money into them. These people are much better off today than all other investors who thought the approach was too simple and continue to this day searching for a better way.

    Keep it simple and let it work.

    Rick Ferri
     
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  2. Zenith Chaos

    Zenith Chaos Well-Known Member

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    I'm too stupid to follow the KISS principle.
     
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  3. Nodrog

    Nodrog Well-Known Member

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    Rick’s Core-4 site should be up and running very soon. That is, portfolio’s with four funds OR LESS. I quite like his writing. But in recent times Rick like many of us seems to desire more simplicity with age.
     
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  4. Redwing

    Redwing Well-Known Member

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    sharon, Snowball and Nodrog like this.
  5. Nodrog

    Nodrog Well-Known Member

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    Low fee older style LICs vs low Fee Cap Weighted ETFs? Love em both. Compliment each other nicely for what we want as investors. Overall smoother ride without ever overpaying.
     
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  6. Silverson

    Silverson Well-Known Member

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    Good time to dig up this discussion, have noticed tide turn to ETFs over the last 2 years. Keen to discuss. LIC or ETF?
     
  7. SatayKing

    SatayKing Well-Known Member

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  8. Redwing

    Redwing Well-Known Member

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    Note - this is a few years back

    I have found a few threads at Bogleheads over the years re: closed-end funds, they also have their wiki

    Closed-end funds - Bogleheads