On Mutual Fund Expenses

• One might think that 1.19% is reasonable (and perhaps it is). But consider this ...
• If one has $ 100,000 invested in this ... it's $ 1,190 every year!
• GGBZX is a classic "fund of funds"
• And what are the components of GGBZX?

• And each of these ... GIEYX, GGEYX, GVEYX, GEMYX, GSCYX have expenses!

• For a true expense ratio of 2.02%
• Contrast the expenses of SPY

• A 5 year chart!

• Warren Buffet's advice is salient!

The Oracle of Omaha made a very public bet with Protégé Partners on December 19, 2007, that over the following 10 years, an unmanaged S&P 500 index fund would outperform a collection of five high-profile fund-of-funds. Buffett won the bet... and it wasn’t even close. The S&P 500 returned a cumulative 125.8% (or 8.5% per year). The hedge funds delivered cumulative returns ranging from just 2.8% to 87.7% (0.3% to 6.5% per year). And remember, this time period includes the 2008 meltdown.