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Title: Misguided Conclusions
Review: The axiom of this book seems to be that the average mutual fund performs worse then the indexes. This is clearly true. However, it is also a nonsensical statistic. The statistic used to calculate the average performance of a mutual fund includes those of fixed income funds such as bonds. These drag down the averages. Also dragging the performance down are taxes on profits and money manager salaries.Dwell upon this: If you selected just one company in the S&P 500 that had plummeting profits and was in for obvious disaster, and did not invest in it, but invested in all the other stocks of the S&P, you have defeated the index.The idea that an intelligent human is unable to defeat the market is ridiculous and Burton G. Malkiel can only pull the wool over the eyes of the uninformed.On a side, unimportant note, Malkiel mispells the name of my hero Allen Iverson.
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