Ken Fisher is probably the best known independent investment advisor in America. At $70 billion under management, with 2,500 employees and a net worth of $3.8 billion, according to Forbes, he is likely also the most profitable advisor in the industry. Fisher is considered the King of Marketing in the industry. He advertises on national TV and in almost every retail financial publication I read. Meb Faber, quoted in Guru Focus, said, “There’s no denying he’s a master of the direct mail and online lead generation process.” I have no problem with his marketing abilities, but I do strongly disagree with the way he manages investors’ savings. In this podcast I respond to Fisher’s chapter on small cap value in “The Little Book of Market Myths”. Using his written words and our statistics, I do my best to create a fair debate. The following links are referenced in my comments: Asset Class Comparisons: Who’s #1? and 2-4 Fund Combo Tables. In the end, the debate is really about the active vs. passive strategies.
Addendum: Paul said that only 10% of fund managers underperformed the benchmarks (index). He meant to have said, “less than 10% are able to beat the benchmark.”