James River Captial is an investment firm that deals with many different types of financial assets and strategies. But the founders of James River Capital know that they can not target everyone and have them as customers. Some people might want to have index funds that are low cost so that they can be hands-off and get on with their life while saving for the future. They may think that index funds provide a margin of safety and that they can benefit from the upward swings in the market each year while protecting their capital. As such, they have the opportunity to track and be in line with overall stocks within the market.
This is a beautiful thing and a bad thing for a variety of reasons. The stocks which outperform may be held back by those who don’t do so well. Again, we see that con in this type of investing is that the general market may prop up bad companies that must be flushed out of the system. When investors go with this approach, they are buying the bad, the mediocre, and the good.
The strategy works as longs as there are more good and great companies than bad companies.
It also works because we see that over the long-term, stocks have continued to rise in the United States.
We always believe that this will be the case as long as things continue as they are today.
Founders at James River Captial would realize that index funds take on a decent portion of risk and thus return a generous part of overall gains each year. But the index might be the best overall if proper active managers are not present to manage growth.
Index funds are not getting rich quick. They are investing slowly over time and preserve value with the rest of the stock market and investors therein.
The next way of investing is to be an entrepreneur. Now, being an entrepreneur is very hard, and Paul Saunders knows this to be true.
Paul Saunders might state that the best way to try out an option is to bootstrap and move it along organically to win.
Find out more about James River Capital: http://paulsaunders.org/