Tom Bradley at Steadyhand makes his case for why it’s possible to win at stock picking. What makes his argument unusual is that he acknowledges the obvious mathematical fact that stock-picking winners must take money away from stock-picking losers. Too many advocates of active investing pretend that we can all somehow be above average. Bradley explains why he thinks he can beat the index without resorting to magical thinking.
Big Cajun Man shows an important difference between how you progress toward debt reduction and weight reduction goals. I found this to be a very interesting insight.
Canadian Couch Potato says that teaching your children important lessons about investing shouldn’t begin with stock-picking.
Preet Banerjee says it’s time to plan your Christmas spending now, but he doesn’t mean to start buying gifts now.
Congratulations to Tim Stobbs at Canadian Dream: Free at 45 who is now mortgage-free at age 34. Not to be competitive, but I paid off my mortgage at age 28. However, I bought a bigger house a couple of years later and got a new mortgage that I paid off at age 35.
Money Smarts was a little annoyed at an article claiming that ETF costs are way higher than just the cost of MERs. He shows that with a more reasonable investment plan, MERs really are the bulk of investing costs.
Million Dollar Journey says that financial independence doesn’t come from paying off debt and having safe investments, but rather from having a huge nest egg. I think he’s right about the independence that comes from having large savings, and right about needing to invest in the stock market rather than just GICs, but I disagree about the debt part. There is nothing wrong with making paying off debts a central part of your financial plan. Unfortunately for financial advisors, if you pay off your debts, you’ll have less money to invest with them.
Canadian Capitalist updates his sleepy portfolio for the third quarter.
Freakonomics has an amusing story of free enterprise being discouraged at Bible School.