Investors never learn

Thanks to Mahalanobis for providing a link to Burton Malkiel’s latest piece on market efficiency and fund investing. As always, he makes the compelling case that most people who invest in stocks should stick to boring-but-cheap index funds. Yet, as index-fund pioneer John Bogle points out here, their market share in the stock fund segment stands at less than 20%.

People are just as overconfident about picking winning funds as they are about selecting above-average stocks, with equally lousy results.