The Investment Scientist

Can you find a needle here?

When it comes to mutual fund investing, the focus of most investors is to find outperforming fund managers. Many financial advisors justify their hefty fees by claiming they can do just that.

Finding a skilled manager is actually a daunting challenge, because it is hard to separate skill from luck. Take Bill Miller, the legendary manager of Legg Mason Value Trust, for example. He outperformed the S&P 500 index for 15 consecutive years. Iron-clad proof he has the skills, right?

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