• Thought of the Day

    Thought of the Day

    2000: Its no surprise why so many annual reports end up in the garbage can. The text on the glossy pages is the understandable part, and thats generally useless, and the numbers in the back are incomprehensible, and thats supposed to be important.

    –Peter Lynch, One up on Wall Street (New York: Penguin, 1990), p. 192.

Today in Financial History

1971: Wells Fargo launches the world's first stock-index fund with $6 million from the pension fund of Samsonite Corp. The trader executing the orders for the new fund immediately acquires the sarcastic nickname "Discount Diane." Snipes a mutual-fund manager, "If people start believing this random-walk garbage and switch to index funds, a lot of $80,000-a-year portfolio managers and analysts will be replaced by $16,000-a-year computer clerks. It just can't happen."

Wayne Wagner, chairman, the Plexus Group (and former portfolio manager, Wells Fargo), interview with Jason Zweig;The Wall Street Journal, June 7, 1973, p. A1;Peter L. Bernstein, Capital Ideas: The Improbable Origins of Modern Wall Street (Free Press, New York, 1992), p. 247;Pensions & Investments, March 6, 2001, p. 25.