No. of Recommendations: 25
But the timing is suspect. He lost his job with Wellington in 1973, and immediately became a convert to passive management.

I suppose.
But you could look at the same event another way.

I gather he got fired from Wellington specifically because of poor performance, resulting from a specific move:
he had gone heavily in with a team of hot traders who he thought could beat the market, and emphatically didn't.

Such a pointed demonstration of the difficulty of beating the market could certainly lead one to consider the notion of it not being worthwhile to try.

So, yes,
(1) First he was a believer in high-fee stock picking while at a fee-based stock picking firm.
(2) Later, no longer doing that, he was a believer in the reverse: low fees and no picking. Sounds bad.

But it's worth noting the event that happened in between:
(1.5) he got his head handed to him (in both fund performance and his job) by trying, and failing spectacularly, to beat the market.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.