As featured in The Wall Street Journal, Money Magazine, and more!

Realism Is Refreshing

This article was written by in Uncategorized. Add a comment.

Chuck Jaffe reports at Marketwatch something he read in a fund’s annual statement recently:

If we don’t deliver consistent performance over the long run, I’d recommend you take your money elsewhere. Really.

This statement appeared in the annual report for Wasatch Funds. It’s rare you see such honesty, but the problem is that funds that perform well for a while build up their investors’ expectations. When expectations are high, it gets more unlikely a fund manager will be able to live up to them.

My philosophy has been to avoid managed funds, when the vast majority cannot beat the average market year after year. For the long term, I invest in index funds like the TIAA-Cref Equity Index Fund [TCEIX].

Updated February 6, 2012 and originally published January 16, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

Email Email Print Print
About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

Leave a Comment

Note: Use your name or a unique handle, not the name of a website or business. No deep links or business URLs are allowed. Spam, including promotional linking to a company website, will be deleted. By submitting your comment you are agreeing to these terms and conditions.

Notify me of followup comments via e-mail. You can also subscribe without commenting.