How You Would Have Lost 75% By Investing In "The Best Mutual Fund"

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5y ago 29:12

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The "best" mutual funds are all the rage. Just do a search on Google and there are nearly 15,000 searches a month for the terms "best mutual funds" and "top mutual funds".

Everyone, it seems, wants to invest in the best. It's such an alluring idea, it even rhymes. "Invest In The Best".

Type "worst mutual funds" though and you only get 40 searches a month. Interesting, no?

So, what happened when you invested in the Best Performing Mutual Fund Of the Decade? Not just the year's best, mind you, the entire decade's best fund?

You were down 75% 5 short years later.

Even today, after 2 solid years up, 45% in 2016 and nearly 10% last year a $100k initial investment would only be worth $37k today. And you will never get back to your starting point.

Remember my friends, a 50% drop means you need 100% on the upside just to break even! Not likely to happen very quickly, if at all.

Which is why you need to "cut your losses". Rule number 1 in investing...ride your winners and cut your losses.

Learn that one rule and you'l be so far ahead of your peers it won't even be funny.

https://finance.yahoo.com/quote/USAGX/performance?p=USAGX

https://www.cbsnews.com/news/why-you-should-avoid-the-decades-top-fund/

https://www.fool.com/investing/general/2015/05/20/usagx-is-this-fund-for-you.aspx

https://www.businesswire.com/news/home/20100125005170/en/USAA-Precious-Metals-Minerals-Fund-Ranks-Top-Performing

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