[caption id="attachment_3210" align="alignright" width="122" caption="Peter Lynch - One Up on Wall Street"][/caption]
Followers of bigfatpurse will know that I am not a definitely not a fan of mutual funds or unit trusts. I stated my reasons in this earlier post: Why investing in mutual funds or unit trusts may not be a good idea. It rekindled my thoughts about mutual funds when I was reading Peter Lynch’s “One Up on Wall Street“, who as a fund manager, believes an investment professional may not do as well as an ordinary retail investor. In his book, he provided elaboration that was not covered in my post and it was his view from the inside that made it even more convincing.
Analysts may not be qualified afterall
Peter was hired at Fidelity (a fund management company) as an intern while he was at Wharton University. He sounded very critical against the investment professionals like the research analysts (which I believe not all are bad) - “Summer interns such as me, with no experience in corporate finance or accounting, were put to work researching companies and writing reports, the same as the regular analysts. The whole intimidating business was suddenly demystified - even liberal arts majors could analyze a stock.” Read more...