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  • Sven February 2016
Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Jason Zweig: When Stock Pickers Stop Picking Stocks

TedTed
in Fund Discussions
FYI: Picking stocks has become so hard that some stock pickers have given up pretending to try.

Pry open the hood of a mutual fund, and you might be startled by what you find. In the past, you would have seen roughly 100 stocks, each painstakingly selected by a portfolio manager passionate about beating the market. Today, you’re increasingly likely to find a few handfuls of exchange-traded funds — those autopilot portfolios that seek to mimic the market rather than beat it.
Regards,
Ted
http://blogs.wsj.com/moneybeat/2016/02/19/when-stock-pickers-stop-picking-stocks/tab/print/

Comments

  • Sven
    It also applies the other way as well and overly concentrated in few stocks, i.e. Fairholme fund. This is why is important to read all reports from funds you are invested in, and validate the holdings elsewhere.
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