Investing as Cooking

A good investing analogy courtesy of AIM Investments and Fund Alarm:

AIM Investments is sending a sticker to brokers and financial planners that's meant to be pasted onto a jar of ready-made spaghetti sauce. The sticker is part of a new campaign that's designed to promote AIM's asset allocation mutual funds.

AIM likens its asset allocation funds to ready-made sauce that's been prepared by professionals, and AIM hopes that individuals will choose its asset allocation funds over self-constructed portfolios.

The AIM promotion notes that spaghetti sauce can be difficult to make from scratch, and the results are often unpredictable. (Source: Fund Action, September 19, 2005)

Fund Alarm notes: The analogy here is obvious. If you have even a little bit of cooking talent, homemade sauce is going to taste better.....and costs less, too. Link