The following article was written by Weston Wellington of Dimensional Fund Advisors and published on 11/29/2011. It discusses the fallacy in trying to pick managers to outperform the stock markets. Bill Miller is one of the most closely watched money managers in the industry, so it was big news when he announced his decision last week to step down as portfolio manager of Legg Mason Capital Management Value Trust (LMVTX) early next year. His departure also adds an intriguing

I have a difficult time forecasting my preference for meals. At times (many times), it’s pizza; other times, it’s something a little healthier. This indecision about what I’ll want tomorrow causes me to not stock up on much, and I rarely shop too far out. Just as what you may want for dinner today may not be what you crave tomorrow, so it generally is with our preferences for investments. The volatility in the markets, combined with the rise in oil and commodity prices, and l

Last week a friend and I were catching up on life over lunch. This particular person happens to be an extremely knowledgeable investor, and he generally enjoys trying to pin me down on what may happen with the market, economy, interest rates, and the like. And while he knows my feelings about predictions, we went on to chat about what is going on in the world; and, what various circumstances may or may notmean for holding different investments. At one point I asked if he was

It might be that it is lacrosse season, or simply the coach in me, but instead of seeing the fault in many investment plans as the ‘Hail Mary’ or ‘Sacrifice Fly’, those I come across with new clients look more like the good old ‘Gilman’. What exactly is the Gilman you may be wondering? If you are not familiar with the sport of lacrosse (also known as The Creator’s Game, and the national sport of Canada), think hockey and soccer combined. The Gilman is a strategy for transitio