Throughout the merger talks a lot of attention has been focused on AB’s so-called "Blue Ocean" plan which targets savings at the company of $1 billion dollars over the next three years.
We’d like to propose a similar Blue Ocean plan for American investors. It’s estimated that investors are currently shelling out around $100 billion dollars annually in fees to Wall Street. That’s about twice what InBev paid for our beloved AB. And as we've already discussed on this blog, investors are getting worse than nothing in return for this money.
It’s time for investors to get serious about doing some big cost cutting in their investment accounts. As you’re watching your portfolio’s value drop like the level of Bud in kegs at a frat party, take a close look at the fees you’re paying.
Think about what you’re getting in return.
Think about how those fees are further depleting your account balance.
Think about the studies that show the performance of low cost index funds beats 80% of actively managed funds in any given year.
Think about how much more money you could have in your retirement fund, 401(k) plan, endowment, foundation, or child’s education fund if you weren’t paying ridiculously high fees for suspect investment advice.
So investors, we urge you to follow the example of AB-InBev and do some significant cost cutting of your own.
And while the ultimate ramifications of AB’s Blue Ocean plan remain to be seen, we’re confident that implementing your own Blue Ocean plan in your investment portfolio could end up being one of the smartest decisions you ever make.
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