Paying 2 and 20…There Is A Time And A Place

This post is by Howard Lindzon from Howard Lindzon

I do not mind paying fees when it comes to my investing.

I can’t be an expert on all investing subjects and while I believe in asset allocation, I hate the idea of indexing so as to ‘save’ fees.

I think there is huge alpha in frontier markets and technologies. I have gotten outsized returns participating in venture capital, crypto, cannabis and hopefully soon NFT’s. No matter how much I read, I will never build the network or domain experience to have an edge. Maybe I could, but I actually don’t have the desire.

My best bet is to pay others to do it for me and it has never been easier to find the experts to do it for you. For frontier markets, I ask my network, meet the people and ask as many questions as I can. I try and have these frontier leaders on my podcast as you know.

Of course, picking an expert in a frontier market does not guarantee returns, and the returns will get watered down some with fees, but after 20 years of doing this I can say it has worked VERY well for me.

The biggest benefit of not being an expert in every investment category, topic, niche or new new thing is I can focus on building a deeper network and stronger domain expertise in the areas that interest me. That is how I get paid.

Investing is one of the greatest freedoms and opportunities I have been given and I (Read more...)