Dave Ramsey - Buy Mutual Funds Not Stocks

[wealthyintime1]

Invest in Blue chips that increase there dividends ever year. For people living in US you got KO, WMT, GIS, JNJ, KO, GIS, PG, and WM. There are others. These companies produce products or provide services people use everyday in good times and bad times. Purchasing these stocks at a good price is the starting point.

[glenndog03]

Guy only lost 50%-75% of his money. He put $15,000 on a stock worth $0.20. That's the risk you take in the market, especially in penny stocks. The program makes it sound like it was some stock worth tens of dolllars and went down to basically nothing. No, this was a stock worth $0.20 a share.

[MadDogAM]

@AceTracer - Even if you were to get an 8% annual return over the next 20 years in a Mutual Fund, it wouldn't be able to keep up with the hidden tax of inflation and taxes. But Dave Ramsey doesn't talk about that does he...

[bwhitervp]

@MadDogAM So what would you recommend as an investment instead?

[MadDogAM]

@bwhitervp Great Question...Answer...Education Don't listen to all of the negative things that people say about things that they don't understand or haven't accomplished. Dave Ramsey is not an investor...he makes his money from speaking and television. Don't listen to the people who tell you that you can consistently earn 8% by investing in Mutual Funds unless they show you that they have done it.

Read "Rich Dad, Poor Dad" by Robert Kiyosaki for a start. Then seek accomplished mentors.

[jimbo525SE]

In times like this makes him look like a genius? WOW! For one this makes him look extremely arrogant. For two he called Peter Schiff an idiot earlier in the year when Schiff called this crisis. Dave that makes you look like an idiot.

[MadDogAM]

Here's some advice, don't follow anyone's trading or investment advice unless they are willing to show you their investment returns. Dave, can you show me how you consistently make 8% return per year in mutual funds and ETF's? I would love to see you prove what you say is possible...talk is cheap.

[AceTracer]

@MadDogAM Who said you'd get 8% return per year? You'd get 8% return over the life of your investment in the fund, because that's historically what the stock market has traded at.

[neemguy81]

Invest in the 3 B's...Beans Bullets, and Bandages. When the shit hits the fan, these will be the most valuable currencies above gold or anything.

[jebenn23]

Only buy single stocks when you think a particular penny stock could become a valuable one (like sirius xm radio) or during a market crash buy something like netflix. But dont put too much into it.

[natesmith1984]

Buy some ETF's or index funds Actively managed funds are pricey.

Single stocks are not so much risk if you use Can Slim by William O' neil of investor's business daily and use a stop loss order at 8% and limit order at 20%.

Risk is option when you implent a stop limit order.

[natesmith1984]

Buy some ETF's or index funds Actively managed funds are pricey.

[mmilewski]

I understand Dave's comments for the time (Oct. 2008) but now you should be investing on your own buying not just one stock but many turning yourself into your own mutual fund. The market is rebounding and I believe will continue well into 2015. When you put yourself into mutual funds they do not by law have to tell you about hidden fees, charges, etc. and this is not transparent. Are these the types of money managers you entrust your assets to?! Ones that refuse to disclose info.?! Not me!

[josephonwhidbey]

AT&T, GE, IBM, all loosers right ?

[Timithos]

How is he making the case for mutual funds when the words, "mutual funds" did not come out of his mouth? This guy on the phone put his money in a single stock from a tip while doing absolutely no homework on his own. Dave Ramsey sees people like this all the time, and he knows this man is incapable of investing in single stocks, because he won't do the necessary research. Dave knows it's absolutely a waste of time to give these people any other advice then diversification.

[zrzr4]

SILVER SILVER SILVER SILVER>>>>PAPER

[CutOff16]

dave is a good guy for hammering home the point our parents should, can't afford it don't buy it! I cannot agree with his investment advice, or anyone's advice. Remember Jim Cramer? if your going to invest, YOU make the money, YOU make the call, do your homework, study study study! Beware of free advice! Beware of GOLD! If youMAKE the money to invest, then You should MAKE the time to scrutinize all avenues! Free advice can bankrupt you!

[tlslayer48]

Just a question...How many of you are millionaires? Oh none..... ok.

[vegaswolf]

66.21% of mutual funds underperformed the S&P1500 from 2004-2008. 79.06% of mid cap failed to match the index. From 1999-2003 the numbers were worse. Source: Justin Fox CNN Finance. You have to really do homework and most that perform well are closed-end or have very high buy ins.

[jeffsfordf350]

@vegaswolf there is an S&P500 mutual fund you can buy into.... 

[vegaswolf]

@jeffsfordf350 nah I started buying gold and silver in 2001. I must be a genius I outperformed the S&P (being sarcastic). I do believe stocks will go up as the Municipal/Federal Bond market implodes..rates have nowhere to go but up then bond prices must go down. But I stay out of the market myself.

[dex1391]

By June 1982, the price of gold had fallen to less than $300 an ounce. And more than 20 years later, in January 2002, it was still trading at less than $300.

[dex1391]

I love the Dave bashers. Especially the ones giving the recent trend as a reason to continue to buy gold.

In January 1980, the price of gold hit $850, an increase of over $700 from its price just five years earlier. (Sound familiar?)

The media was filled with headlines eerily similar to todays — fears of inflation, a falling dollar, huge budget deficits and foreign policy problems.

[chuckminsterabby]

How to start, Dave, why the fuck would you recommend Mutual funds holy shit if you pull this card you might as well do index funds without all of the god damn fees. I agreed with all of the statements he is full of shit. Smooth talker bad investor hes on the let it ride routine. Keep working Dave.

[Timithos]

@chuckminsterabby the words "mutual funds" didn't come out of Dave's mouth one time

[jeffsfordf350]

@chuckminsterabby Never mind that Dave is multi millionaire. I bet you make less than 40K///

[jwill808]

You are totally correct my friend !

[jwill808]

Dave Ramesy is a fucking retrad...Buy what he says and you will be broke.

[Ps2Viper87]

Take your broke, poor, idiotic immaturity somewhere else! Those of us who are thriving because of what Dave teaches will continue to prosper!

[jwill808]

Broke...poor...idiotic..hum. Considering the fact that fund managers are the only one who make profits of mutual funds...I think those who buy those funds are nothing but sheep being led to the slaughter. You want some real money advice listen to my show " Money Does Grow on Trees"

[Smartguy561]

You apparently don't understand Mutual funds. you say the fund managers are the only ones who make profits? Baloney! If I invest say $100 a month and do DOA (Dollar cost averaging) and get an average rate of return on my money of 10-12% (12% is the avereage for the stock market over the long term) do you think I will be complaining that the fund manager gets paid for what he does? No! Follow the rule of 72! My money will double every six years!

[MadDogAM]

@Smartguy561 You sound just like my investment advisor that lost me thousands of dollars using the rule of 72 (only works with consistent returns) and dollar cost averaging. These are tools used by those that invest other people's money. Question...how are you doing with your Mutual Funds this year?

Dave's investment advice is horrible in my opinion. I would love to see someone who has used his investment advice put up their actual returns to prove me wrong. Has your money doubled yet?

[sethhersch]

@MadDogAM

I rather like Dave, but I couldn't agree more that DCA in particular is overplayed. If the market is up more than it's down, which it is, then dollar cost averaging insures that you are buying at increasingly expensive prices over time. For most of us working stiffs, it's an inevitability we live with, so you hope for the occasional correction to buy some bargains.

DCA is hugely lucrative for the brokers because they are paid on the number of transactions that take place.