Slate's Bizbox
bad advice: How to lose your money fast.

History Is BunkFund A grew 15 percent a year. Fund B grew 3 percent. Don't be a sucker and buy Fund A.

By Henry Blodget
Updated Wednesday, Feb. 21, 2007, at 7:24 AM ET

Browse the entire Bad Advice series here.

(Continued from page 1)

The bottom line: Although common sense suggests that scrutinizing past performance should enable you to select funds that will perform well, it usually won't. There are some instances in which past performance is a good predictor of future performance: with index funds, for example, or in cases in which a fund's good results are due to low costs. In most cases, however, past performance is irrelevant.

VIEW AS SINGLE PAGE
Print This ArticlePRINTDiscuss this in The FrayDISCUSSEmail to a FriendE-MAIL
Share on FacebookPost to MySpace!Share with MixxDigg ThisShare with RedditShare with del.icio.usShare with FurlShare with Ma.gnolia.comShare with SphereShare with Stumble Upon
Henry Blodget's book, The Wall Street Self-Defense Manual, was recently published by Atlas Books and Slate. You can buy the book here. You can learn more about it here.
Join the Fray: our reader discussion forum
What did you think of this article?
POST A MESSAGE | READ MESSAGES
Washington Post
The Washington Post
OPINIONS
Let the Oil Deals Flow
Raad Alkadiri | Congress should not interfere in the oil industry's contract negotiations with the Iraqi government.