Facebook’s looming initial public offering will mint a new generation of Silicon Valley millionaires on a level not seen since 2004, when Google went public. In this Portland Business Journal guest column, Vista’s Dougal Williams explains why Facebook’s new rich would be wise to learn an investment lesson from their Silicon Valley neighbor.
TAG: Active vs. Passive
Contrary to one market pundit’s prediction that 2011 would be an “easy year for stock pickers,” last year turned out to be pretty tough for active managers. Fully 84% of U.S. stock funds failed to keep pace with their index benchmarks. After factoring in taxes, however, results were even worse.
At nearly half a trillion in assets, the Norwegian Government Pension Fund has a lot going for it: 249 highly-skilled investment managers, no taxes and management fees that are next to nothing. With every advantage an investor could hope for, why couldn’t they outperform a simple index fund?