Similar stories play out in every bull market. Someone somewhere begins investing for the first time. First in mutual funds until they get a taste for better returns.
This story, in particular, begins in 1957. A lone investor makes his first foray into the stock market. An inheritance from his father’s death left him with more money than he needed, so where to invest it? The family suggested mutual funds for the long term. So that’s what he did.
His returns were average.
But the market was booming. The post-war boom struck the 1950s with one of the longest bull markets ever. People who never invested before were drawn to the stock market because of the possibility to turn meager savings into a small fortune. Our lone investor included.
It started with a conversation with his cousin. “Do you have money in the market?” “No, except mutual funds.” “You should talk to my broker.”
And so it began. Continue Reading…