Investing Style Changes Are Foolish

Some advisers say that mutual fund investors should not buy a fund that clings to a particular “style” of investment, such as small cap or large cap. But to pick and choose what is just right for the times.

That advice will tip you off that the adviser has no specific strategy; he or she is willing to change strategy to suit whatever style may be popular at the time. That’s a form of market timing that doesn’t work and besides, it indicates a lack of required discipline.

My experience has shown that such undisciplined investments with no set strategy tend to not do well. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)