120: Meb Faber – A Crash Course in Long-Term Investing—For Short-Term Traders
Chat With Traders
00:00
How to Do Things Tax Efficiently
Taxes and fees are probably the most important determinants of your future performance. They're vastly more important than your asset allocation for long-term investors. If you look at traditional investment options, so let's say that we're targeting a return net of all expenses of around 8%. You really only need a 10% return to get to that 8%. An actively managed mutual fund because it probably has a 100% turnover and because the management fee is that traditional 1.25% that we talked about earlier for mutual funds, you all of a sudden need to have over 13% gross returns to get that 8% after tax. And then lastly you have our hedge fund friends which starts 2
Transcript
Play full episode
