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"Some diversity is good, but too much is bad. Forget mutual funds! They are outdated. During the 1990s, fully 90% of actively managed funds have underperformed the market averages, according to Lipper Analytical Services. You can diversify your stock portfolio by buying index tracking stocks, such as the S&P 500's Spiders (AMEX: SPY) or the Nasdaq Index 100 (AMEX: QQQ). This also lowers commissions and fees. Having too many stocks can be worse than too few. In addition to Spiders and QQQ's, I suggest picking no more than 10 of the best-known, best-run companies, with low debt, strong balance sheets, high demand, and great vision for the future. For more on how to find such companies, check out the Rule Maker Criteria."

So, if I took a couple of mutual funds like VFINX and VTGIX that both track the S & P 500 and they beat the SPDR what's up with that?(I notice that the Fool's don't seem to notice things like when an index fund beats its index which VFINX did in 1999 and 1998 and is part of a chart here in Fooldom.)

JB, who likes his index funds and thinks mutual funds aren't evil just some of them and just like stocks noone should have all of them.
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