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\\ The problem is, **countless studies** show that once an investor has four actively managed funds in an asset class, they have something called a “closet index fund,” where they are never likely to get performance that beats the index, but they will pay higher prices to get that disappointing performance. [asterisk emphasis mine]
OT (responding to something Investor just wrote),
>> Today I am selling my holdings in FRIFX and tomorrow will probably invest in BUFBX. FRIFX has performed not very well in the past month.
Wow. Talk about the opposite of longterm investing. And total class switch too!
Reply to @davidrmoran: No offense to anyone here but the funny things I hear is, 'I am buying this for long term' and then sell it for a few weeks or months of underperformance. I would have heard this statement innumerable times here as well as at M* discuss.
In general, like Walstreet, main street also developed short term mentality, 3 months have become eternity these days.
I own a chunk of WBALX in my 401k and think it's a decent fund, especially if you want some balance / dry powder but don't want to be exposed to bonds at current yield level.s But like all Weitz funds the ER is a bit high, so if I accumulate a big enough chunk I will often move it into DODBX with lower ER. Manager Brad Hinton buys many of the same stocks Weitz doea, which IMO is a good thing since I respect Weitz as a stock picker.
Reply to @VintageFreak: I Sold AQRIX Last Month, I Must Admit I Got Suspicious About Them When They Started Coming Out With Lots Of New Funds, They Are Only Interested In Taking In New Money.
Reply to @mrc70: I know, as though mutual funds are tip stocks. I invested with Heebner for 21 years, going from 5k to 182k, and never bailing out no matter what I read or anyone said. Taught me a lesson. Not a fun ride always.
Comments
From today's Jaffe column:
\\ The problem is, **countless studies** show that once an investor has four actively managed funds in an asset class, they have something called a “closet index fund,” where they are never likely to get performance that beats the index, but they will pay higher prices to get that disappointing performance. [asterisk emphasis mine]
OT (responding to something Investor just wrote),
>> Today I am selling my holdings in FRIFX and tomorrow will probably invest in BUFBX. FRIFX has performed not very well in the past month.
Wow. Talk about the opposite of longterm investing. And total class switch too!
In general, like Walstreet, main street also developed short term mentality, 3 months have become eternity these days.