Money
Portfolio Manager Admits He Cannot Use Simple ETF Strategy Because It Looks Too Basic
We Study Billionaires
TIP817: Simple Investing Beats Complexity
"I was speaking with someone who manages portfolios for one of the large banks here in Canada. And when I asked if he could manage, say, a $5 million portfolio using just 3 or 4 well-researched ETFs with a small fixed income component to manage the volatility. He flat out told me, looked at me, he said, I can't. It would look too simple."
David Fagan, managing partner at MBF Chartered Professional Accountants, revealed that a portfolio manager at a major Canadian bank admitted he could not manage a multi-million dollar portfolio using just a few ETFs because it would appear too simple to clients. This confession exposes how financial industry incentives prioritize complexity over client outcomes, as simpler strategies would justify lower fees.
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We Study Billionaires