I gotta come clean. I cheated.
I copied all the answers from my classmate’s scantron (who happened to be the valedictorian).
Every. Single. One.
Nope, not a single solitary part of our investment strategy came from me.
So I can’t really take credit for any of it.
Warren Buffet said to buy and hold.
Jack Bogle (the found of Vanguard) said nobody can beat the index consistently, just invest in the index.
Finance PhD’s (much smarter than me) said rebalancing with 20% tolerance bands is optimal.
My allocation tech optimizes the ingredients in our portfolio.
My portfolio management tech does all of the trading for me.
You won’t find my fingerprint on a single penny of the $60M we manage.
Now you may be asking, “So then why do I charge 0.25%?”
Our members pay 0.25% for access to our investment management system.
Even though our strategy is based on completely unoriginal ideas, we have the tech to execute it.
My tech tells me when to adjust the allocations.
My tech scans all 3,710 induvial positions every day searching for ones that have a little too much or a little too little.
My tech creates trade files that I upload to Schwab every morning and they execute the trades for me.
Flat out, unequivocally there is no individual investor who can do what we do in their Fidelity account.
The tech we use just isn’t available to non-professionals. Sorry.
The only way someone can use the same strategy is to open accounts with Wealthfront or Betterment or any other robo-advisor.
We all use the same strategy.
And that’s why we all charge 0.25%. That’s just what it costs to invest correctly.
(BTW if you’re paying a financial advisor more than 0.25% to manage your money and they use the same investment strategy, then you’re overpaying.)
So I may have copied all of the valedictorian’s answers, but I was still smart enough to sit at the desk next to hers!
