The attached New York Times article highlights a recent five-year study of mutual funds in which consistently strong performance was found to be remarkably rare. This proves once again why we use low-cost index funds as a core part of our investment strategy. The article notes:
“This seems to bolster the case for index-fund investing. After all, if a fund manager with a great year can’t be counted on to outperform other fund managers later, it’s reasonable to ask: Why bother trying to beat the market at all?”
Read the full article from July 19, 2014 at, “Who Routinely Trounces the Stock Market? Try 2 out of 2,862 Funds” by Jeff Sommer.