I loved that old chestnut from Smith Barney, that was so eloquently enunciated by the late John Houseman. It was his authoritative voice that sent droves of investors over to Smith Barney, because surely they will make money for them?
What happened to Smith Barney? It eventually got bought by Morgan Stanley, which then morphed into Morgan Stanley Smith Barney, but now it is just Morgan Stanley (I am shortening the story a great deal, check the link for the full details).
This battle cry continues on in the Investing World, that the only way to really make big money, is to actively manage your investments, and most likely have a broker for advice, that way you are earning your money. While you are earning your money, many parts of the investing industry are earning money as well, so that must mean it is correct.
Index investing or Couch Potato investments seem to fly in the face of this concept (you do very little to earn your money).Â I guess the only question I might ask that is the catch phrase I could think might explain this is that Couch Potatoes are working smarter not harder.
The question that comes to mind is: Does anybody (in the investment industry) make money the old-fashioned way any more? Seriously, do they?
Currently, making money on the market is simple. We have been on a historic Bull market that has even lasted through a Pandemic. When everyone makes money, a good portfolio is still important. Making as much as possible within reason is important. Getting your money working for you (to use a hackneyed expression) is your goal.