Investing According to Dilbert

Scott Adams, the now infamous creator and continued instigator of Dilbert, has his own investing strategy.

In a recent Wall Street Journal Online article, the King of Dilbert spills his true feelings about investing, professional money managers, and if beating the market is possible.

Mr. Adams says he doesn’t consider buying broad index funds and index ETFs to be “investing”—and he means that as a compliment. He doesn’t believe ordinary investors or financial pros really have any insight into what is going to work, so he equates investing—or trying to boost returns by making selections based on some intelligence or research or expert advice—with “junk science and astrology,” he says.

Mr. Adams does invest using index funds—just market tracking index funds.

He has come to use ETFs rather than index funds in the past five years because of their usually lower expense ratios. He says he bought them through discount brokerage Charles Schwab Corp., and he bought his munis with assistance from Schwab’s bond specialists.

A former believer in professional money managers, Mr. Adams swore off financial advisors after the Enron and WorldCom meltdowns during the 2000-2002 bear markets. His personal “non-professional” investments lost money. Just much less money than the professionals.

His sentiment is summed up by the fact he…

…doesn’t believe there is a scientific way for investors to decide how to spread their money among assets.

He has since been managing his own investments. In between cartooning of course.

Read the entire article at the Wall Street Journal Online.

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