Wall Street is Like a Roller Coaster
Take a walk with me down the midway. First, there’s the Wall Street ticket booth. If you want to get in to where all the action is, you have to pay the price of admission (buy some stocks), with no guarantee that you’ll enjoy the experiences to follow.
Once inside, the range of sights and sounds is dazzling. People urge you to, “Step right up and take a chance.” For investors, this could be the “hot stock” phone call at dinnertime from a Florida broker, who keeps referring to you as “my friend.” Or, it’s the parade of magazines that shout the “10 Best Mutual Funds to Buy This Year,” based solely on the old news from the previous year, which is historically unreliable for predicting a repeat of the short-term performance.
There’s the ring toss game, basketball free-throw and rifle range. For the person who buys individual stocks, it takes a lot of practice and skill to win at these. The insider tricks to success aren’t learned easily, even though it looks easy. That’s why many people prefer to increase the odds in favor of more frequent success with mutual funds. They hire fund managers, who better und ...