“mutual funds are for wimps and bonds for losers…”

Mutual Funds myths

1. Mutual Funds offer best diversification. A 300-stock mutual fund is safer than 25 to 30 individual stocks. This is false. In fact 12 to 15 well chosen stocks offer all the safety necessary.
2. It is also thought that big city fund managers own sharper crystal balls than advisors in the Bloomington boonies. The only thing sharper in the big city is talk.

Mutual Fund Fee hell
The ultimate drag for mutual funds is the fees. When you buy stocks you pay the commission and that’s that. Mutual funds are often blood leeches that suck you from under 1% to over 2%.

2% percent is not much?
$10.000 at 10% for 10 years = $25937.42
$10.000 at 8% for 10 years = $21435.89

So in 10 years that adds up to about 20% in difference.