The Daily Dow
FOOL GLOBAL WIRE
by Robert Sheard (TMF Sheard)
LEXINGTON, KY. (May 6, 1997) -- Please, a moment of silent reflection
on the deep and heart-rending loss those of us in the Bluegrass suffered
today. In a place where college basketball has few rivals for our devotion,
the announcement today that head coach Rick Pitino is leaving to take over
the head coaching position with the Boston Celtics triggered a regional day
of mourning.
I know, I know, "talk about investing, bonehead." Well, it may be a stretch,
but there's actually a connection I'm going to try to pull off. Anyone who
follows mutual funds (as we do, even if only to keep reminding ourselves
how poorly the average fund performs) knows that the name of the fund and
the performance record for it means precious little if it has a different
manager every few years.
Let's face it, the fund's performance is dependent upon the manager's ability
and control. The Bluegrass Market Value Upside Downside fund can be terrific
with one manager and dreadful with another, despite the same structure, the
"same" prospectus, and the "same" look.
So whether it's my beloved Wildcats, and they'll always wear that deep
Kentucky blue, regardless of who's coaching,
or the mutual fund you may have considered, it's crucial to know who the
brain is behind the performance before you make any decisions.
Of course with investments, there's an even better option. You can play Athletic
Director and Fund Company President and simply hire yourself to run the show.
And with some great game plans (like the Dow Approach) in your play book,
you should have no problem posting Pitino-like numbers for your portfolio.
(Has this metaphor been stretched far enough, yet? Thought so. Best of luck
with the Celtics, Rick; we wish you the best.) Stay Foolish!
(c) Copyright 1997, The Motley Fool. All rights reserved. This material
is for personal use only. Republication and redissemination, including posting
to news groups, is expressly prohibited without the prior written consent
of The Motley Fool.
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