The investor's dilemma: how mutual funds are betraying your trust and what to do about it

Abstract

Foreword. Preface. Acknowledgments. Chapter 1. Mutual Funds: A painful Birth. In the beginning. A Good Idea. Cracks in the Good Idea. Chapter 2. Searching for Rational Investors in a Perfect Storm. A Perfect Storm. A Simple Survey. The Fortune 10 Test. The Performance Test. Value Investing: A Behavioral Finance Perspective. Chapter 3. The Anatomy of the Stock Market. The Stock Market Chapter 4. Investing at Warp Speed. Sell It All Every Year? Massachusetts Investors Growth Stock Fund. Investing Blind. Chapter 5. Greed is Good: The Appeal of a Publicly Owned Fund Management Company. T. Rowe Price. Profitability. How To Make 80 Percent a Year Without Breaking the Law. Conflicts of Interest. Grow The Assets. Who's Watching the Store? The Greed Factor. Candor Becomes A Casualty. Form Over Substance: Shame on the SEC. The Failure of Candor Runs Deep. As Good As It Gets? Chapter 6. The Investor's Dilemma: Long on Life Expectancy, Short on Income and Searching for Guidance. A Crisis of Moral Imagination. How The Other Half Lives ... Everyone Agrees: We Are Frightfully Poor Investors. And Now A Word From Pogo ... What Pogo Forgot. Of Bubbles and Swans. Are You A Patient Investor? Chapter 7. The Industrialization of Mutual Funds. Margin of Safety. Economy of Scale. How the Marketing of Mutual Funds Came to Look Like Soap. Franklin Resources-A Study in Economies of Scale. Industrialization. Retailers, That's Where the Money Is. The Death of Security Analysis. Asset Allocation. Rebalance My Portfolio ...You Said What? A Witch's Brew. About Those Benchmarks ... Wrapping Up the Benchmarks. Managing By Rote Can Hurt ... Badly. Chapter 8. Through a Window ... Darkly. The First Story Behind Those Numbers. Multiclass Fund Shares. Now Here's a Stealthy Way to Influence a Broker's Advice. Soft Dollars? - Hey, That's My Hard Cash. Revenue Sharing. Corruption by Committee: The Story Gets Worse. Devious and Deceptive? What's Missing From the Disclosures? Some Particulars. Boards of Directors: Watchdogs or Lapdogs? Some Unresolved Questions. Chapter 9. How to Pick a Mutual Fund. An Overview. Back to Pogo ... And You! Buy A Mutual Fund? The Good Funds Fairly Shout Out Their Strengths. What to Look For in a Stock Fund. Price and Value. Index Funds. Two Stock Funds. Notes. Index.