“Santa Claus and the Easter Bunny should take a few pointers fr
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om the mutual-fund industry [and it’s fund managers]. All three are trying to pull off elaborate hoaxes. But while Santa and the bunny suffer the derision of eight year olds everywhere, actively-managed stock funds still have an ardent following among otherwise clear-thinking adults. This continued loyalty amazes me. Reams of statistics prove that most of the fund industry’s stock pickers fail to beat the market. For instance, over the 10 years through 2001, U.S. stock funds returned 12.4% a year, vs. 12.9% for the Standard & Poor’s 500 stock index.”
– Jonathan Clements
“Only Fools Fall in … Managed Funds?” Wall Street Journal (New York), September 15, 2002.