{"id":4465,"date":"2007-06-23T09:39:51","date_gmt":"2007-06-23T09:39:51","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/06\/wrap_fees_beware_of_investment"},"modified":"2021-09-20T15:41:34","modified_gmt":"2021-09-20T20:41:34","slug":"wrap-fees-beware-of-investment","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/","title":{"rendered":"Wrap fees?  Beware of \u201cinvestment professionals\u201d who say they only charge a percent or two!"},"content":{"rendered":"<p>\t\t\t\tIn a letter to his Berkshire Hathaway shareholders entitled &#8220;How to Minimize Investment Returns,&#8221; Warren Buffett points out that between December 31, 1899 and December 31, 1999, the Dow rose from 66 to 11,497. That&#8217;s a 17,400% gain! Thus, a hundred dollars invested into a Dow portfolio during the 20th century would have grown to $17,500!<\/p>\n<p>Yet, that&#8217;s an annual compound return over 100 years of only 5.3%, said Buffet while adding that, if only 1% per year is paid in management fees, nearly 20% of the profits would go to the money manager.<\/p>\n<p>Building on Mr. Buffets warning: If a $100 investment was made the last day of 1899 and managed for 1%, it would COMPOUND at a net rate of only 4.3%. Thus, the portfolio would have grown to only $6,736 during the century that followed. The fee would have cost great-gramps over $10,000, leaving him with a little over one-third what he would have without &#8220;professional help&#8221;.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/\"  title=\"Continue Reading Wrap fees?  Beware of \u201cinvestment professionals\u201d who say they only charge a percent or two!\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In a letter to his Berkshire Hathaway shareholders entitled &#8220;How to Minimize Investment Returns,&#8221; Warren Buffett points out that between December 31, 1899 and December 31, 1999, the Dow rose from 66 to 11,497. That&#8217;s a 17,400% gain! Thus, a hundred dollars invested into a Dow portfolio during the 20th century would have grown to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3825,3738],"tags":[],"class_list":["post-4465","post","type-post","status-publish","format-standard","hentry","category-financial-advisers","category-investor-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Wrap fees? Beware of \u201cinvestment professionals\u201d who say they only charge a percent or two! &#8212; Investor Lawyers Blog &#8212; June 23, 2007<\/title>\n<meta name=\"description\" content=\"In a letter to his Berkshire Hathaway shareholders entitled &quot;How to Minimize Investment Returns,&quot; Warren Buffett points out that between December 31, 1899 &#8212; June 23, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Wrap fees? 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Beware of \u201cinvestment professionals\u201d who say they only charge a percent or two! &#8212; Investor Lawyers Blog &#8212; June 23, 2007","description":"In a letter to his Berkshire Hathaway shareholders entitled \"How to Minimize Investment Returns,\" Warren Buffett points out that between December 31, 1899 &#8212; June 23, 2007","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/","twitter_card":"summary_large_image","twitter_title":"Wrap fees? Beware of \u201cinvestment professionals\u201d who say they only charge a percent or two! &#8212; Investor Lawyers Blog &#8212; June 23, 2007","twitter_description":"In a letter to his Berkshire Hathaway shareholders entitled \"How to Minimize Investment Returns,\" Warren Buffett points out that between December 31, 1899 &#8212; June 23, 2007","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Wrap fees? Beware of \u201cinvestment professionals\u201d who say they only charge a percent or two!","datePublished":"2007-06-23T09:39:51+00:00","dateModified":"2021-09-20T20:41:34+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/"},"wordCount":418,"articleSection":["Financial Advisers","Investor Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/","url":"https:\/\/www.investorlawyers.com\/blog\/wrap-fees-beware-of-investment\/","name":"Wrap fees? 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