Investing Psychology Chapter 5: The Professional Magic Show (Part 1)
When we have a toothache, we go to a dentist. When we have a legal problem, we call a lawyer. So when we have money to invest, we go to a professional, right?
Mutual funds
Can Stock Analysts Really Predict the Future?
Chapter 7 of A Random Walk Down Wall Street asks a question that should make every investor uncomfortable. All those analysts on Wall Street, the ones in suits flying first class and talking earnings forecasts all day, can they actually predict the future? Malkiel digs into the evidence. And it’s not pretty.
Mutual Fund Operations: Types, Fees, Performance, and ETFs
Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2
Chapter 23 covers mutual funds, and it is packed. This is one of the longer chapters because mutual funds are such a big part of the financial system. There are more than 7,500 different mutual funds in the US with total assets of about $12 trillion. If you have a retirement account, you are almost certainly invested in one.
Investing Psychology Chapter 5: Why Even the Experts Get It Wrong
When we get sick, we go to a doctor. When something breaks, we call a professional. So when it comes to investing, we hand our money to financial experts. Makes sense, right?
A Tour of the Fund House: Peter Lynch's Guide to Mutual Funds
Book: Beating the Street by Peter Lynch with John Rothchild | ISBN: 978-0-671-75915-5
Mutual funds were supposed to make investing easy. Instead of picking stocks yourself, you just pick a fund. But here’s the thing. By the early ’90s there were more mutual funds than individual stocks on the New York and American exchanges combined. So now you had to pick from 3,565 funds. The confusion didn’t go away. It multiplied.
Beating the Street by Peter Lynch: Why This Book Still Matters
Book: Beating the Street by Peter Lynch with John Rothchild | ISBN: 978-0-671-75915-5
Peter Lynch ran the Fidelity Magellan Fund for 13 years. During that time, he turned every $1,000 invested into roughly $28,000. He bought more than 15,000 stocks. He beat the market almost every single year. And then, at age 46, he quit.