❤️ Spot on. "Past performance is not indicative of future returns!"
When I was working at the #1 hedge fund, the head of marketing stood up on his desk and scolded the whole building.
I'll never forget it.
He said "This is bullet-to-the-head risk! We NEED to make it clear to everyone we talk to! We ALWAYS must disclose this reminder. Past performance is not indicative of future returns!"
It's REALLY hard for anyone to internalize and remember this.
(Humans have flawed memories and logic, after all.)
So, find an external mechanism to keep reminding yourself.
Thank you for sharing your knowledge. This is great info, as many people overlook fees.
Well said, Ben. Concise and clear message.
Excellent advise. I used to fall for the 'past returns' bait earlier. But I think time in the market made me resilient to such marketing.
Nice post!
Reminds me of a saying that mutual funds are sold, not bought…
❤️ Spot on. "Past performance is not indicative of future returns!"
When I was working at the #1 hedge fund, the head of marketing stood up on his desk and scolded the whole building.
I'll never forget it.
He said "This is bullet-to-the-head risk! We NEED to make it clear to everyone we talk to! We ALWAYS must disclose this reminder. Past performance is not indicative of future returns!"
It's REALLY hard for anyone to internalize and remember this.
(Humans have flawed memories and logic, after all.)
So, find an external mechanism to keep reminding yourself.