So you're looking at a real return of 5% or less, which is not a lot. Seven percent annual average returns for stocks over the next decade is the consensus among the investing pros I talk to. What kind of returns should people expect? As they look forward, they'll have another. If people look backward, they will have one set of views. And he wrote his wonderful book Security Analysis in 1934. What's your advice for them?īen Graham said that people pay too much attention to what the market is doing currently. Their conversation has been edited.ĭespite recent highs, bear markets and crises have made our readers nervous about stocks. Today he still worries about investing costs, as well as the challenges that aging boomers face from low bond yields, uncertain stock returns, and dubious financial come-ons.Įllis, 75, spoke recently with Money editor-at-large Penelope Wang. That influential piece was the basis for Ellis's classic investing book, Winning the Loser's Game, the sixth edition of which is due in July.įounder of the financial consulting firm Greenwich Associates, Ellis has also served as a director of Vanguard.
Nonprofessionals stand even less chance of outperforming the benchmarks, argued Ellis, so individuals need to rethink their approach to building wealth.
DOES OUTLOOK COST MONEY PROFESSIONAL
He shook up Wall Street in 1975 with a landmark article in a financial trade journal that attacked the notion that professional money managers consistently beat the market. Charley Ellis may not be a household name, but he commands the respect of many savvy investors.
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