Here Are Some Of The Mutual Fund Pros Who Got Demolished On Facebook… – Business Insider
Great investors are more masters of emotion than “smart”. Few of the managers can master emotion and rotate in and out of sectors or stocks like the wind blows. They panic sell like the sheep they are when all the other funds are selling hoping to lose less so they make their quarter. When things go up they are emotional chasers and buy in hard to keep up with the other funds again so they can make the quarter.
A private investor can take advantage of all these “smart” guys and their emotions as well as short term thinking of hitting quarterly performance metrics. Being a patient investor in control of emotions is much better than being smart. I’ve been running circles around these funds for decades and didn’t have to pay a fee to anyone but myself.
Those who invest in funds if they don’t have the time or know how (or emotional control) should only be doing one thing. Investing in a low fee index fund like Vanguards S&P 500 index fund and adding to it every week or month regardless of price, market, news, headlines, etc. Otherwise your odds are not great of having any manager do well for you after fees.