The boredom will end soon.

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The boredom will end soon.

We just finished watching Leave the World Behind (the #1 movie on Netflix!) and it was all right, except for the nausea-inducing cinematography (you’d have to watch it to see what I mean, but trust me). I was struck, and a bit alarmed, and the many themes in the movie which are identical to those I wrote about in my Solid State book, including
I just want to be clear that I wrote ALL this stuff, including my recent revisions, before I saw this thing! Oh, by the way, the ending to the movie sucks out loud. It’s incredibly bad.
Anyone here remember Peter Lynch? He was probably the most famous investor in the world back in the 1980s. He ran the Fidelity Magellan Fund, which was lauded as a superstar of investment prowess. I was curious how the fund (whose symbol, FMAGX, I memorized decades ago) stacked up the boring old basic SPY. Here’s what SlopeCharts yielded for me:

In short, over the span of history we’ve got, SPY produced about TWICE the returns of Fidelity Magellan, even though they moved pretty much in lockstep. It seems pretty clear that the days of mutual funds are over, as they are relics of a bygone era and have been wholly replaced by ETFs. The funny thing is that FMAGX still has $26 billion under management, and no one could really explain why.