Mutual Fund Quotes

The average mutual fund holding period for equity or fixed income is only about three years. It’s too short.

The mutual fund industry provided the money for Intel and Motorola and Hewlett-Packard to crush the competitors.

Mutual fund managers are trapped in this rather deadly vicious circle: the more successful they are, the more money flows into their mutual fund. Then, it is more difficult for them to beat the market averages or even to match their own past performance.

Unbeknownst to most American investors, significant portions of their public pension, mutual fund, life insurance and private portfolios are comprised of stocks of privately held companies that partner with state sponsors of terror.

Investors tend to discover ‘hot‘ mutual fund managers just after a successful run and just before the inescapable force of mean reversion is about to kick in.

Mutual fund managers want your money in their funds. They get paid based on assets under management.

There no longer can be any doubt that the creation of the first index mutual fund was the most successful innovation – especially for investors – in modern financial history.

It’s the company itself, but most of these mutual fund companies, the guy who runs the company is just a fact totem and the guy who runs the money is the power. But we really don’t know who they are.

Hedge fund managers charge so much more than mutual fund managers; alpha is even harder to come by. They end up selling a variety of things beyond mere outperformance.

Many financial advisors recommend that you diversify for your own protection. What they fail to tell you is that it is also for their protection. Since most financial advisors cannot tell you exactly which stock or mutual fund is a great investment, they tell you to buy a bunch of them.

I don’t think that a mutual fund that invests exclusively in biotech start-ups or invests exclusively in companies in Thailand offers any great safety or diversification.

I decided that there was only one place to make money in the mutual fund business, as there is only one place for a temperate man to be in a saloon: behind the bar and not in front of it.

The big advantage that we have as a venture capital firm over a hedge fund or a mutual fund is we have a 13-year lockup on our money. And so enterprise can go in and out of fashion four different times, and we can go and invest in one of these companies, and it’s okay, because we can stay the course.

Entrepreneurs or international conglomerateurs, or large financial institutions buy or create mutual fund management companies to create a return on their own capital. It’s capitalism at work, where the rewards tend to go to the managers rather than the investors.

There’s accountability in the mutual fund industry. And they’ve been tremendous engines of wealth for people and they’re going to continue to be so.

There are a lot worse things you can do with all your bucks than giving them to even a mediocre mutual fund – such as, for example, giving them to a mediocre hedge fund. If supporting the lifestyle of a mediocre fund manager is your favorite charity, who am I to stop you?

The mutual fund industry and small investors are very relentless and very unforgiving if people don’t perform.