Wait now, Mr. Bernstein, are you not a financial adviser, and do you not put your clients into investments than are managed by a financial-services firm (DFA)?
Well yes he is, and yes he does. But Bernstein didn't mean those members of the financial-services industry. Nor, surely, did he intend the financial advisers who read this column. The distinctly above-average can breathe a sigh of relief.The rest of the industry he beats with a large, metal-studded stick. Bernstein writes, "It's sad but true: By the time you've completed the reading for the previous four hurdles, you'll know more about finance than the average stock broker or financial adviser. ... In fact, the prudent investor treats almost the entirety of the financial industry landscape as an urban-combat zone. "One can argue with the severity of the message, but not its conclusion: keep costs low. Wall Street encourages investors to spend more and churn frequently. The savvy investor will realize that most of those arguments are wrong and will accept higher costs only rarely and reluctantly. With investing, less is more.