Lies & Truths #7 The Graveyards are Full of Gurus

Today we continue our Lies and Truths series (from the book pictured at the left with our own Margaret Wittkopp on the cover).  To see the entire series, just click on the link at the bottom of this post or in the sidebar.

The media loves to promote the wisdom and insights of managers with ""hot hands" or the "Midas Touch."  They gleefully put them in advertisements and on magazine covers.  These gurus are often featured one or two years later in derogatory articles about how their investing prowess has mysteriously disappeared.  They die in the the pages of the Wall Street Journal or Money Magazine.

The truth is, stock picking does not work.  Period.