So a former insider at Goldman Sachs has revealed the term sometimes applied to customers: “muppets.” And we are supposed to be shocked that a big Wall Street firm doesn’t always think highly of its customers.
The Goldman insider who spilled the beans is Greg Smith. There’s a great perspective on all this at Zero Hedge. But my take is a little different. How do the muppets get revenge on the likes of Goldman Sachs? That’s simple — buy buying and holding index funds. That way, we little customers get the market average return at below-average costs. And we’re never on the bad end of a structured asset that was designed to be sold to unsuspecting investors.
Let the big boys gain and lose their millions against each other. Small investors walk away with a more reliable return if they leave them to their devices and follow sensible long-term strategies.