“The fee asset managers charge is for the value they provide. If a farmer grows a fruiting tree, you pay him more for the tree than you would pay him for just a seedling. Why? Because of the effort, energy and skill the farmer put into growing that tree plus the added value of the income (fruit) that tree provides are a testament to the farmers value add and he deserves to be compensated for that value add. It’s the same kind of thing with the 2 & 20 you pay the portfolio manager.”
Quote by Hendrith Smith
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“To acquire an asset at greater cost than value is simply unwise.”
Source: Investing, The Permaculture Way: Mayflower-Plymouth's 12 Principles of Permaculture Investing
Source: Investing, The Permaculture Way: Mayflower-Plymouth's 12 Principles of Permaculture Investing