For those of you that keep up with your stock market history, you know that the Sequoia Fund was the mutual fund that Warren Buffett recommended investors should choose during his transition period between closing down his privately run partnership and gaining control of Berkshire Hathaway. Investors listening to Buffett would have been well-rewarded for following his advice, as the Sequoia Fund is one of the best performing mutual funds of the past half-century.
But one thing I do want to show you is that active management, even when it is well-earned, does carry consequences. For a moment, let’s hop back in the wayback machine and travel to December 31st, 1981, the first day on which I can find publicly accessible trading data for the company that is now Conoco Phillips.
At that time, an investor could have been mulling two decisions: to invest $10,000 into shares of … Read the rest of this article!