Confessions of an Institutional Investor ".... 3. They Assume Complex Must be Better - The investors that run these portfolios are highly educated individuals who are very intelligent. It’s hard for them to admit that the simple solution makes the most sense. Being able to understand complex strategies makes them think they are superior to index funds and ETFs. There is false sense of security when you spend your time talking with brilliant, wealthy alternative managers."
One of the biggest myths -- from Wall Street to Inside the Beltway -- "complex is better" -- and OMG! don't let the lawyers get involved -- if you find a lawyer or investment advisor who understands that simple is better, hang on to him/her, they are worth their weight in gold! Ask Sam Zell about the complex deal from hell that a bunch of lawyers and financial gurus concocted for him!
And how about that Obamacare website - healthcare.gov? By the time all the bureaucrats and Obamacrats inside the beltway got done with their waterfall specs - it was bound to fail. $500 million wasted, when a $5 million dollar (and that's being generous) investment in a website built on the Google Cloud or AWS, would have accomplished the essential tasks competently on Day 1!