The investor's dilemma: how mutual funds are betraying your trust and what to do about it

Foreword

Preface

Acknowledgments

Introduction

Chapter 1. Mutual Funds: A Painful Birth

In the Beginning

A Good Idea

Cracks in the Good Idea

Chapter 2. Searching for Rational Investors in a Perfect Storm

A Perfect Storm

A Simple Survey

The Fortune 10 Test

The Performance Test

Value Investing: A Behavioral Finance Perspective

Chapter 3. The Anatomy of the Stock Market

The Stock Market

Chapter 4. Investing at Warp Speed

Sell It All Every Year?

Massachusetts Investors Growth Stock Fund

Investing Blind

Chapter 5. Greed Is Good: The Appeal of a Publicly Owned Fund Management Company

T. Rowe Price

Profitability

How to Make 80 Percent a Year without Breaking the Law

Conflicts of Interest

Grow the Assets

Who's Watching the Store?

The Greed Factor

Candor Becomes a Casualty

Form over Substance: Shame on the SEC

The Failure of Candor Runs Deep

As Good as It Gets?

Chapter 6. The Investor's Dilemma: Long on Life Expectancy, Short on Income, and Searching for Guidance

A Crisis of Moral Imagination

How the Other Half Lives...

Everyone Agrees: We Are Frightfully Poor Investors

And Now a Word from Pogo...

What Pogo Forgot

Of Bubbles and Swans

Are You a Patient Investor?

Chapter 7. The Industrialization of Mutual Funds

Margin of Safety

Economy of Scale

How the Marketing of Mutual Funds Came to Look like Soap

Franklin Resources-A Study in Economies of Scale

Industrialization

Retailers, That's Where the Money Is

The Death of Security Analysis

Asset Allocation

Rebalance My Portfolio ... You Said What?

A Witch's Brew

About Those Benchmarks ...

Wrapping Up the Benchmarks

Managing by Rote Can Hurt ... Badly

Chapter 8. Through a Window ... Darkly

The First Story behind Those Numbers

Multiclass Fund Shares

Now Here's a Stealthy Way to Influence a Broker's Advice

"Soft Dollars"?-Hey, That's My Hard Cash

Revenue Sharing

Corruption by Committee: The Story Gets Worse

Devious and Deceptive?

What's Missing from the Disclosures?

Some Particulars

Boards of Directors: Watchdogs or Lapdogs?

Some Unresolved Questions

Chapter 9. How to Pick a Mutual Fund

An Overview

Back to Pogo ... and You!

Buy a Mutual Fund?

The Good Funds Fairly Shout Out Their Strengths

What to Look for in a Stock Fund

Price and Value

Index Funds

Two Stock Funds

Notes

Index