Originally Posted by tark_o
THe problem with mutual funds is that the turnover ratio is just too high! the comision fees, and the taxes they pay because of that makes them a investment that is secure but very low return... you both should read the same book, the warren buffet way. I am sure you both agree the best way to invest is to buy and keep... keep long enought so that your investment grows as the Company you invested grows as well...
No, I won't agree with that. The statement is far too broad for something as complicated as investing. Depending on a person's ROI goals and willingness to risk capital, there are lots of ways to invest. Someone who makes $40,000/yr and has a 401(k) account should probably be in mutual funds, particularly if they are supporting a family. Low risk, long-term growth is ideal for a person like that.
Investing in a pharmecutical fund, for example, is probably a smart move right now. Investing in a single pharmecutical stock, however, is pretty risky. One FDA trial goes south and the stock plummets.