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Want to Outperform 98% of Professional Mutual Fund Managers? Buy This 1 Investment and Hold It Forever.

The Motley Fool

Professional fund managers tend to be highly educated, hard-working, and extremely smart. But it doesn't take a highly complex trading plan to come out ahead of 98% of professional mutual fund managers over the long run. However, the challenge is compounded as the fund manager starts managing more capital.

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Annaly Capital Management's Total Return Won't Pay the Bills

The Motley Fool

The most attractive feature of real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY) is its humongous 13.7% What does Annaly Capital do? For starters, that's more like a mutual fund model than a typical REIT model, given that there are no operating assets involved. dividend yield.

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You Can Outperform 98% of Professional Fund Managers by Using This Simple Investment Strategy

The Motley Fool

And in an ironic twist, the less competitive you are, the better you'll be able to stick with a strategy that can lead you to after-tax returns that beat 98% of professionally managed mutual funds. All you have to do is buy a broad-based index fund and hold it for years. That's why mutual funds charge fees.

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Want to Outperform 88% of Professional Fund Managers? Use This Simple Investment Strategy.

The Motley Fool

It's a quirk of stock market mechanics that makes a simple investment strategy far better than the average actively managed mutual fund. While it might be possible for many professional funds to outperform over the short run, it gets harder and harder as time goes on. There's a big drag on active funds' investment returns: fees.

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Missed Out on the Bull Market Recovery? 3 ETFs to Help You Build Wealth for Decades.

The Motley Fool

Exchange-traded funds (or ETFs ) make this much easier to do by sidestepping the need for stock picking. They make it easy to capitalize on all of the market's long-term potential without any further action needed on your part. Technology Select Sector SPDR Fund Technology stocks have a bit of a reputation for being volatile.

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3 Investing Habits of Millionaires

The Motley Fool

In particular, people with net worths of $1 million or higher tend to have more of their money in the following: Stocks/mutual funds Real estate Business interests Those in the $10,000 and $100,000 tiers invest in those, too, but not nearly as much. Millionaires put their money into appreciating assets (assets that can grow in value).

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What's the Best Way to Invest in Stocks Without Any Experience? Start With This ETF.

The Motley Fool

The fact that even professional mutual fund managers struggle to consistently beat the market should tell you everything you need to know about your chances of doing so. For instance, last year, 60% of large-cap mutual funds offered to U.S. For instance, last year, 60% of large-cap mutual funds offered to U.S.