charts and trends, page-20

Bengrahamreborn,

I read a study recently that showed traders/chartists had comparable returns to long term investment. However, where traders/chartists lost a large chunk of their returns was to "frictional costs" such as brokerage fees and taxes such that they were significantly worse off.

In America, Warren Buffett estimated something like 30% of returns disappear in frictional costs. (can't remember the exact figure)

If anyone is interested, check out the bet between Warren Buffett and some big note hedge fund. Warren bet a low fee index fund after fees would beat a high fee hedge fund after fees over a number of years. Warren's index fund is winning.