Why I hate Mutual Funds- Intro: Some Things No Longer Make Sense
SOME THINGS NO LONGER MAKE SENSE TO OWN
THE MODEL T
On October 1, 1908, the Ford Motor Company began production of the Model T in Detroit. Ford would build 15 million Model T cars over the next 18½ years — the longest production run of any automobile model in history except for the Volkswagen Beetle. 1
Though the Model T was fairly expensive — about $20,760 in today’s dollars, $825 in 2 1908 — it was designed and built for the common man. It had a four-cylinder, 223 horsepower engine, which was all anyone needed at the time. The car weighed 1,200 pounds and reached 40 miles per hour. People who had been walking to where they needed to go suddenly had better lives.
WHY I HATE MUTUAL FUNDS AND YOU SHOULD, TOO
By the 1920s, Americans wanted cars with more style (more colors than black), more luxury (improved suspension) and more power (to keep up with the developing nation). So, Ford revamped its cars, and in 1927 the Model T ceased production.
Would you buy a Model T today? Maybe, if you love vintage cars. But for most, a Model T makes no sense to own. Modern traﬃc can’t support a product created in 1908.
What about buying a ﬁnancial product that essentially has not changed since the early 1900s?