Mutual Funds and the Concept of Value Creation: Part 2
I humbly submit to you that if anybody really understood how mutual funds work, they probably would not invest in them. The mutual fund industry has grown due to a complete lack of financial education of the American people. Not only are most Americans completely financially uneducated, but they have no education in the area of investing as well.
One of the strategies that the media and experts have used to keep their customers clueless is the use of financial doubletalk. This is the mumbo-jumbo that every financial expert on CNN or the nightly business report uses. There may be some technical meaning to the individual terms that they use, but most of what they say is pretty meaningless. The effect is that people who have not taken the time to learn what all these terms mean think that it’s too difficult for them to understand. To me, that’s not that’s just not fair.
So what’s the solution? Our solution is education. Anyone in America with a library card or a computer connected to the Internet can receive all the education they need to succeed financially. They can learn as much as they want about how to invest. And they can succeed.
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
