Heed the warning label on mutual funds – passive is better

The warning is posted in fine print at the bottom of all mutual fund advertisements: “Past performance does not guarantee future results.” The U.S. Securities and Exchange Commission requires it. But when it comes to actively managed mutual funds, that warning should perhaps be updated to: “Strong performance almost certainly guarantees worse performance in the […]

Time to declare “game over” for active fund management?

Is it time to declare “game over” in the contest between active and passive fund management? Funds are pouring into Vanguard Group’s passively-managed index funds, with total assets at the firm nearing $3 trillion. No less a stock picking legend than Warren Buffett is endorsing passive – he has advised his own trustees to put […]