Mainly because of fees and trading-related costs, the vast majority of actively managed funds are unable to beat their benchmark index over long time periods. Using past performance to pick actively managed funds does not improve your chances of beating the index going forward.
The Soda Can Stove and Investing
My family loves the great outdoors and we try to be in it as much as our schedules allow. A few weeks ago we were able to go camping for a few days before our two boys were due back at school. We had spent the latter part of summer near Breckenridge, Colorado, so we didn't have far to go to escape civilization. Climbing 13,957 ft (4254 m) Pacific Peak was the "pinnacle" of our three-day, two-night trek, providing us wonderful 360-degree views of the beautiful Rocky Mountains. Let me tell you a short story about this trip and how it relates to one aspect of the AlphaGlider way of investing.