http://www.ericjohnolson.com/blog/2007/02/21/marketocracy-behind-the-numbers/ Thinking about Business Development Wed, 24 Feb 2010 18:39:26 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.ericjohnolson.com/blog/2007/02/21/marketocracy-behind-the-numbers/comment-page-1/#comment-54953 Wayne the mutual fund guy Mon, 28 Jan 2008 01:58:23 +0000 http://www.ericjohnolson.com/blog/2007/02/21/marketocracy-behind-the-numbers/#comment-54953 Unfortunately convenience and the perception that some genius is going to invest their money wisely and make them rich at retirement are their reasons for investing in mutual funds. The fact is of course that management fees and poor management decisions usually make the returns mediocre at best and seldom beat inflation over the long haul. The perception of growth is just that, perception. The way CPI figures are manipulated the poor investor doesn't realize until its too late that he could have put a list of stocks on a dart board and done better. And dollar cost averaging, well that's another myth. There are some funds able to show good returns over short periods but the bigger they are the harder it is for them to exit during dowenturns. Unfortunately convenience and the perception that some genius is going to invest their money wisely and make them rich at retirement are their reasons for investing in mutual funds. The fact is of course that management fees and poor management decisions usually make the returns mediocre at best and seldom beat inflation over the long haul. The perception of growth is just that, perception. The way CPI figures are manipulated the poor investor doesn’t realize until its too late that he could have put a list of stocks on a dart board and done better. And dollar cost averaging, well that’s another myth. There are some funds able to show good returns over short periods but the bigger they are the harder it is for them to exit during dowenturns.

]]> http://www.ericjohnolson.com/blog/2007/02/21/marketocracy-behind-the-numbers/comment-page-1/#comment-4408 4 Quick Things at Disruptive Thoughts Tue, 06 Mar 2007 11:13:43 +0000 http://www.ericjohnolson.com/blog/2007/02/21/marketocracy-behind-the-numbers/#comment-4408 [...] 1) A user-generated mutual fund returned 71% for investors. An interesting idea, a great return, and Eric shows us why it’s not attractive. [...] [...] 1) A user-generated mutual fund returned 71% for investors. An interesting idea, a great return, and Eric shows us why it’s not attractive. [...]

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