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Subject:  On the Fool's mutual fund newsletter (again) Date:  8/30/2004  1:46 AM
Author:  HedonistiX Number:  29952 of 39521

Another article addressing the subject that had been discussed on this board a while ago.

While I was away on vacation, I'm glad I did not miss one of Chin's post on the Coffeehouse Ponderings, the 5 second reply on what's going to happen to the stock market: "I don't know and I don't care."

Pretty safe to say, for me, that's the closest thing to the more-established options I bolded from the below article.



By Charles A. Jaffe
For The Inquirer

In the late 1990s, Tom and David Gardner - the brothers behind The Motley Fool online investment community - regularly ridiculed mutual funds and the people who bought them.

Their key statistic back then was that nearly 90 percent of all funds failed to outperform the Standard & Poor's 500 Index. Never mind that 98 percent of the indexes tracked by Morningstar failed to beat the same benchmark over the same period. This was their proof that owning actively managed funds was a "wise" thing to do.

In the Motley Fool world, foolish is good and wise is dumb. The only fund that was foolish to buy - meaning smart - was a low-cost S&P 500 index fund.

Fast-forward a few years.

..... And that's why the Motley Fool, which also has a syndicated column that appears Tuesdays in The Inquirer, created a newsletter earlier this year. It is aimed at fund investors (the same class of people whom the Motley Fool once derided as dupes and suckers) in hopes that those fools (note the lower case) will pony up a $149 subscription to earn their capital letter and become Fools ......

..... "They're asking you to forget their past advice that you should not buy mutual funds, and saying instead that now you should pay them for advice on just how and why to buy them," says Jason Zweig of Money magazine, a longtime Fool critic. "It's a head-scratcher."

It sure is.

And even if the advice in the newsletter is good, investors should take the entire publication lightly and stick with more-established options until they're confident that The Fool really has changed its tune and won't go back to ridiculing fund investors the next time it suits business purposes.
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