There were two qualities about the mutual funds of the 1920s that made them extremely speculative. One was that they were heavily leveraged. Two, mutual funds were allowed to invest in other mutual funds.

Quote by Ron Chernow

Topics: Ron Chernow Quotes

I'm a biographer; I can live with a little hyperbole.

I'm a biographer; I can live with a little hyperbole.

Once the brokerage house, rather than the bank, became the locus for American savings, that...

Once the brokerage house, rather than the bank, became the locus for American savings, that...

After 1929, so many people had been traumatized by the stock market crash that there...

After 1929, so many people had been traumatized by the stock market crash that there...

Mutual fund managers are trapped in this rather deadly vicious circle: the more successful they...

Mutual fund managers are trapped in this rather deadly vicious circle: the more successful they...

I have developed a very strong partiality for the dead: they don't talk back, they...

I have developed a very strong partiality for the dead: they don't talk back, they...

Because of the love affair between the American public and the stock market, it is...

Because of the love affair between the American public and the stock market, it is...

In the 1970s we saw a massive shift of household savings from the banks to...

In the 1970s we saw a massive shift of household savings from the banks to...

Mutual funds give people the sense that they're investing with the big boys and that...

Mutual funds give people the sense that they're investing with the big boys and that...

You don't want too much fear in a market, because people will be blinded to...

You don't want too much fear in a market, because people will be blinded to...

As a bull market continues, almost anything you buy goes up. It makes you feel...

As a bull market continues, almost anything you buy goes up. It makes you feel...

The securities laws of the 1930s were so important because it forced companies to file...

The securities laws of the 1930s were so important because it forced companies to file...

One of the very nice things about investing in the stock market is that you...

One of the very nice things about investing in the stock market is that you...

Any bull market covers a multitude of sins, so there may be all sorts of...

Any bull market covers a multitude of sins, so there may be all sorts of...

What I find very interesting about the mutual funds managers is that here are people...

What I find very interesting about the mutual funds managers is that here are people...

Partly because his life ended before the age of 50, Hamilton was defined by the...

Partly because his life ended before the age of 50, Hamilton was defined by the...

The mutual fund industry and small investors are very relentless and very unforgiving if people...

The mutual fund industry and small investors are very relentless and very unforgiving if people...

The best argument for mutual funds is that they offer safety and diversification. But they...

The best argument for mutual funds is that they offer safety and diversification. But they...

As the bull market goes on, people who take great risks achieve great rewards, seemingly...

As the bull market goes on, people who take great risks achieve great rewards, seemingly...

When the market is just going up, up, and up, we all tend to be...

When the market is just going up, up, and up, we all tend to be...

We really haven't had very much experience with people funding their retirement out of the...

We really haven't had very much experience with people funding their retirement out of the...