Bill Miller's Legg-Mason Fund

The numbers are out. Over the past decade, Bill Miller, the once-esteemed fund manager of the Legg-Mason fund, has trailed the market by a several percent per year. Throughout the 1990s, Bill Miller became one of the darlings of the fund industry, constantly churning out returns that stomped the market at-large. Regarded as a financial genius, Bill Miller acquired almost $1 billion in his fund. Now, the pendulum has swung in the other direction as the stocks that Bill Miller has purchased have fallen out of favor.

Not only does this demonstrate just how quickly yesterday's stars can turn into today's burnouts, they also demonstrate the futility of trying to time and beat the market. If Bill Miller, a very intelligent man who had beaten the stock market for over a decade and a half, can lose his prowess and start underperforming the market, then what basis does the average investor have for thinking that he or she can achieve market superior returns? Of course, the right answer is that low-cost index funds, such as those found at Vanguard, are the safest way to bolster your retirement savings, as your general returns will be quite similar to the overall market, minus the frictional expenses. Robert Wasilewski over at RW Investing wrote a great article on Bill Miller's falling out of favor in the fund industry, and I highly recommend that you check out his article here: http://rwinvesting.blogspot.com/2011/07/legg-mason-10-year-results.html .