IndependentInvestor Newsletter 086C of 27 02 2010 

Today's quote:When negotiations on NAFTA were proceeding, Canada continued its ban on American banks’ ownership of more than a small minority interest in Canadian institutions. Meanwhile other negotiators outmaneuvered American objections to Canadian banks’ outright acquisition of American banks. Those “bureaucrats and politicians” Canadian bankers sometimes deride ensured that Canadian banks’ highly-profitabledominance of the Canadian financial system would continue.Donald Coxe

 

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This is our eighty-sixth newsletter on current events and new developments, always from the viewpoint of the independent investor. If you are a new member, click here for general information about our newsletters.

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During the past week we tweeted on a submission we made on the upcoming federal budget

This week we discuss a report on finding mutual fund managers.

We hope you enjoy it.

How to find a mutual fund manager blindfolded with your hands tied behind your back

So you've decided to invest in a mutual fund. How will you choose it? The financial industry says ad nauseam that you should consult with your financial advisor. He will probably trot out the many qualities of the manager of the fund he recommends: that he is experienced without being too old, an expert (of course), cautious but not too much, aggressive without being a daredevil, and honest without being naive. You are already salivating at the windfall results that this guru is going to produce just for you. But before signing your check ask yourself whether you (or even your adviser) really have sufficient information on the fund manager to ensure a market-beating performance.

 

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