CHAPTER 12
The Role of Money Managers
Only the mediocre are always at their best.
—Jean Giradoux
Contrary to reports from all the index fund sellers, it is possible to beat the averages, and possible to find managers who can do so consistently. If you do even the slightest thinking on the subject, it becomes obvious. We learned in grade school that the “average” was the middle, so by definition some must be above (and of course some below). An index is supposed to be at or near the average, so some will (must) do better. While it is certainly possible to find the “better,” it is not always easy. Instead of thinking like Buzz Lightyear and looking for a manager who will last “to infinity and beyond,” it is best to think more like a coach ...
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