Swensen explains how mutual fund ratings are no help

David Swensen, former head of Yale's endowment fund and author of one of the best books about investing for individuals, recently wrote a guest editorial for the NY Times. He calls out almost everyone - individual investors, mutual fund companies, regulators, and Morningstar.

About Morningstar's famous ratings, he says "But the rating system merely identifies funds that performed well in the past; it provides no help in finding future winners. Nevertheless, investors respond to industry come-ons and load up on the most 'stellar' offerings."

At Inveska, we agree. That's why we look beyond past performance.