This example comes from a review of Louis Engel's How to Buy Stocks. in the April 20, 1953 edition of The New York Times:
[F]rom 1937 to 1950, fourteen of the biggest and best known mutual funds whose assets were wholly invested in common stocks showed a net gain on their holdings of only 2.2 per cent…. In contrast, the Standard & Poor’s index for ninety representative stocks showed an increase during this same period of 4.1 per cent.
Posts
2 comments:
So if the fees and expenses of the mutual funds were 2.0%, they beat the S&P by 0.1% before fees. Seems about right.
That was long before index funds were a choice.
Before indexing, the cheapskate investor bought 20 well diversified stocks and achieved much the same result.
Post a Comment