Brutal Quote by Holman W. Jenkins, Jr
“Will customers keep supporting the enormous overhead required to sustain ineffectual, unproductive stock picking across an array of thousands of individual funds devoted to every investing 'style' and economic sector or regional subgroup that some marketing idiot can dream up? Not likely. A brutal shakeout is coming and one of its revelations will be that stock picking is a grossly overrated piece of the puzzle, that cost control is what distinguishes a competitive firm from an uncompetitive one.”
About This Quote
Source Column: Financial Times, 2022
He argues that high fees for many specialized funds are unsustainable; cost control, not stock picking, will separate successful firms.
In simple terms: Expensive, niche funds are likely to fail; low costs win.
Key Takeaway
Focus on low‑cost, diversified investing.
Themes
finance
investment
fees
competition
Mood
analytical
critical
Type
financial
advisory
When to use this quote
- retirement planning
- portfolio construction
- fund selection
Key Concepts
cost efficiency
market structure
investment strategy
Questions to Reflect On
- How can investors evaluate true cost versus benefit?
- What alternatives exist to traditional fund picking?
A Different Perspective
Low‑cost funds may still underperform.
