“That’s what prompted me to tell the radio interviewer, ‘That’s why mutual funds suck. Not only do they suck 80 percent of the dividends, in come[sic] cases they suck another 73 percent of other gains from investors.'”
(Via Yahoo! Finance.)
Mr. Kiyosaki is so right that the mutual fund industry is taking the average investor for a ride. The fees are far higher than justified because the average investor doesn’t get what she pays for: superior returns. If memory serves, fully 80% of active fund managers, i.e. stock pickers, can’t beat the market. Monkey’s throwing darts at the Wall Street Journal do better! Of course, there will be managers who beat the market for short periods of time and an elite few do so over the long haul. But who knows who they will be apriori? If you have that kind of crystal ball, skip the manager and get right to picking the right stocks!