Peridot Capital Management LLC- Consistently Superior Investment Returns

Chad Brand post a good blog and a good web site. The web site includes a presentation that shows among other things the disadvantage of investing through mutual funds. I often mention to investors that 80% of mutual funds under-perform the market. Chad reports that the number is 84%!

He sites two reasons for the under-performance. First the funds over-diversify making their gross results consistent with index funds. Then they charge you a list of fees that often includes a big management fee. I did not see a mention of the distribution fee in Chad's work but this one takes the cake. Many funds charge customers a separate fee to cover the marketing costs to sell the fund to new customers.

Another well written missive is about sell side research. Instead of re-posting the info here, I will leave it to you to visit the site. Chad charges a significant fee for his services but in my opinion most investors would be better off using Chad's portfolio services rather than mutual funds or the typical "full service" brokerage account.

I have never met Chad and I have no financial interest in his company. Invest with him at your own risk. I am familiar with Chad only through what I have read on the internet. It is clear that he focuses his investment efforts on the important issues and avoids making the "game too complicated"; the KISS principle works!

BY THE WAY, NOW IS THE TIME TO INVEST IN STOCKS! LIKE CHAD SAYS IN HIS PRESENTATION, THERE HAS NEVER BEEN A 20 YEAR PERIOD OF UNDER-PERFORMANCE. IF YOU WANT TO MAKE SERIOUS MONEY, YOU NEED TO GET YOUR DOLLARS INVESTED IN THE MARKET AND HOLD ONTO THE BUCKING BRONCO (MANY THANKS TO KEN FISHER FOR HIS SAGE ADVICE OVER THESE MANY YEARS--I BELIEVE IT WAS AROUND 1992 WHEN HE FIRST WROTE TO HOLD ONTO THE BUCKING BRONCO).