Your statements on fee structure are spot on. I've often used the CPA analogy myself. I am surprised the AUM model has remained for so long. Or maybe I am not. It is so lucrative. Even Vanguard has adopted it, though their fees are far less than the 1%. I can't imagine it takes 20x the hours to manage a $20M portfolio as a $1M portfolio. Great post.
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Your statements on fee structure are spot on. I've often used the CPA analogy myself. I am surprised the AUM model has remained for so long. Or maybe I am not. It is so lucrative. Even Vanguard has adopted it, though their fees are far less than the 1%. I can't imagine it takes 20x the hours to manage a $20M portfolio as a $1M portfolio. Great post.
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Link to comment from April 19, 2025