I finished The Fundamental Index by Robert Arnott, Jason C. Hsu & John M. West a few months ago. It is a useful read even if one doesn't agree with the thesis about fundamental indexing. There are interesting points to be made about many aspects of equity behaviors and the profiles that make up the concept of equity returns and risk.
I offer the following chart as interesting example of the outcome of mutual fund returns for the average investor.
Most investors ranging from hedge fund pros to the average person are subject to buying high and selling low relative to their own investments whether its a Hedge Fund of Funds, or the average person buying a single mutual fund.
Attribution bias is the human bias of attributing success to oneself and failure to some external source. Accountability and responsibility are out of fashion these days, but I thought I would submit the following for consideration. The chart below is found in The Fundamental Index.
