Tag Archives: Larry Swedroe

Your Fund Manager is No Albert Pujols, and Other Lessons from Larry Swedroe’s Investing Tales

Albert Pujols hits a home run against the Padres, May 19, 2008, photo: SD Dirk via Flickr

Corporate 401(k) plan sponsors pick bad funds for their plans, according to a 2006 study. Then the participants in the plans compound the problem, again picking funds headed for a fall.

Why? Because though the Securities and Exchange Commission mandates that funds put in any piece of marketing the disclaimer that past performance is not indicative of future results, it seems no one believes them.

In chapter 15 of his new book, Wise Investing Made Simpler, CBS MoneyWatch columnist Larry Swedroe acknowledges a logic to our apparent fiscal recklessness. Continue reading

Larry Swedroe on Passive Investing and Skill

One recent Sunday afternoon Larry Swedroe set off  a passionate debate on the Bogleheads board when he posted some thoughts about investing skill. Or more particularly its irrelevance.

Swedroe, an avowed proponent of passive investing, wanted to clarify his position. It’s not that investing skill can’t exist, he argued, it’s that if it does, the markets will, over time, erase that advantage. And, just as importantly, that  it’s impossible to predict where that skill will show itself.  We’re betting against the odds if we try to pick the winning investors (or fund managers). Continue reading