Praise for The Investor′s Dilemma
"Not since Graham and Dodd has an author defined investment principles as clearly as Lou Lowenstein in The Investor′s Dilemma. Not only does he comprehensively dissect the ways careless and impulsive investors have been misled and cheated by self–serving fund managements, but Lowenstein names specific funds and techniques for careful investors to obtain superior results. This persuasive and extraordinarily readable book will be hugely helpful to present and prospective fund investors."
Arthur Levitt, Senior Advisor, The Carlyle Group
"Anyone involved with mutual funds from small investors to top fund executives should consider seriously this book′s insights and message. The mutual fund industry won′t like The Investor′s Dilemma one bit, but when criticism comes from so thoughtful a voice as Louis Lowenstein, it merits attention."
Don Phillips, Managing Director, Morningstar, Inc.
"Lou Lowenstein writes the truth about mutual funds, warts and all. And more: a clear–cut case for value investing, the approach that makes sense and that works, and yet is practiced by so few."
Jean–Marie Eveillard, Portfolio Manager, First Eagle Funds
"Provides a critical, hard–hitting, and honest dissection of the mutual fund industry and what you should know before investing in a fund. Lowenstein provides a framework that you can use to identify funds and organizations that are shareholder–oriented. By following his simple checklist of selection criteria, you can minimize the risks and increase the odds of finding one of these rare funds."
Bob Rodriguez, CEO, First Pacific Advisors, LLC
"The Investor′s Dilemma is an essential read for any passive investor contemplating putting any of his or her wealth into a mutual fund. The book is not only informative, but also well written and entertaining."
Martin J. Whitman, Portfolio Manager, Third Avenue Value Fund
"The Investor′s Dilemma clearly and succinctly contrasts the owner–operator partnership form of mutual fund investing with the conflicted, but pervasive asset–gathering model. Every shareholder in the six–trillion–dollar mutual fund universe should absorb Louis Lowenstein′s sagacious counsel. Bravo!"
Mason Hawkins, Chairman and CEO of Southeastern Asset Management, Inc., advisor to institutional clients and the three Longleaf Partners Funds
"Calling on the wisdom of academics, practitioners, and even the comic strip character Pogo, Lowenstein examines the short–term pressures that doom individual investors as well as many mutual fund companies to engage in speculation instead of investing."
Bill Nygren, Portfolio Manager, Oakmark Select Fund
Chapter 1. Mutual Funds: A painful Birth.
In the beginning.
A Good Idea.
Cracks in the Good Idea.
Chapter 2. Searching for Rational Investors in a Perfect Storm.
A Perfect Storm.
A Simple Survey.
The Fortune 10 Test.
The Performance Test.
Value Investing: A Behavioral Finance Perspective.
Chapter 3. The Anatomy of the Stock Market.
The Stock Market
Chapter 4. Investing at Warp Speed.
Sell It All Every Year?
Massachusetts Investors Growth Stock Fund.
Chapter 5. Greed is Good: The Appeal of a Publicly Owned Fund Management Company.
T. Rowe Price.
How To Make 80 Percent a Year Without Breaking the Law.
Conflicts of Interest.
Grow The Assets.
Who′s Watching the Store?
The Greed Factor.
Candor Becomes A Casualty.
Form Over Substance: Shame on the SEC.
The Failure of Candor Runs Deep.
As Good As It Gets?
Chapter 6. The Investor′s Dilemma: Long on Life Expectancy, Short on Income and Searching for Guidance.
A Crisis of Moral Imagination.
How The Other Half Lives . . . .
Everyone Agrees: We Are Frightfully Poor Investors.
And Now A Word From Pogo . . . .
What Pogo Forgot.
Of Bubbles and Swans.
Are You A Patient Investor?
Chapter 7. The Industrialization of Mutual Funds.
Margin of Safety.
Economy of Scale.
How the Marketing of Mutual Funds Came to Look Like Soap.
Franklin Resources A Study in Economies of Scale.
Retailers, That′s Where the Money Is.
The Death of Security Analysis.
Rebalance My Portfolio . . .You Said What?
A Witch′s Brew.
About Those Benchmarks . . .
Wrapping Up the Benchmarks.
Managing By Rote Can Hurt . . . Badly.
Chapter 8. Through a Window . . . Darkly.
The First Story Behind Those Numbers.
Multiclass Fund Shares.
Now Here′s a Stealthy Way to Influence a Broker′s Advice.
"Soft Dollars?" Hey, That′s My Hard Cash.
Corruption by Committee: The Story Gets Worse.
Devious and Deceptive?
What′s Missing From the Disclosures?
Boards of Directors: Watchdogs or Lapdogs?
Some Unresolved Questions.
Chapter 9. How to Pick a Mutual Fund.
Back to Pogo . . . And You!
Buy A Mutual Fund?
The Good Funds Fairly Shout Out Their Strengths.
What to Look For in a Stock Fund.
Price and Value.
Two Stock Funds.