Keeping Mutual Fund Investing Simple

Scott Burns, of Universal Press Syndicate, compares the long-term performance of two of his low-cost, index-fund model portfolios: the Couch Potato portfolio and the Coffeehouse portfolio, in his personal finance cloumn at the Houston Chronicle. As might be expected, over the last 10 years (ending 2004), the Coffeehouse portfolio, with its overall higher weighting in equities, and its additional holdings in REITs, international stocks, and small-cap stocks, outperformed the Couch Potato portfolio, with its 50-50 weighting in stocks and bonds, 10.84% to 10.36%.

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(May '04-Jun '05)