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No. of Recommendations: 3
Harry Jones is ONLY going to hold spiders--how else could the Fools "guarantee" that it will not be beaten by the index (and probably beat 90%+ of mutual funds to boot).

Rather than critisizing this, Fools should embrace it. Here's why: very few people should be buying common stocks. Think about it: the overwhelming majority of people have neither the time, temperment, or (most importantly) the ability to evaluate companies and buy stocks. Anyone want to hazard a guess of what % of Americans could tell you the difference between gross and net margins? Is there ANYONE (other than your typical broker) who thinks that someone who doesn't know the answer to this should be buying stocks?

So, the bottom line is that for the great majority of people, the options are either buy a mutual fund or buy an index fund. Well, that's a no-brainer to us, but when you look at how much $ is in actively managed (and need I say, underperforming) mutual funds vs. index funds, this is clearly a war that needs to be waged. And what better way than to set up a portfolio that, over time, is absolutely certain to: a) beat a great majority of mutual funds; b) incur no taxes, loads, or other charges; c) take no time; and d) require absolutely no investment/business/financial knowledge.

This is genius!
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