The small print is always there, even if no one ever actually reads it: past performance is not an indicator of future results. This week, Chuck Jaffe took to his column to remind us that that's true even for award-winning mutual funds.

The MarketWatch scribe asks if buying shares in a fund because of Morningstar awards collected by the fund's PM is wise. He specifically cites the case of Bruce Berkowitz of the Fairholme Fund [profile] as an award winning manager who turned in at least one year with poor returns.

Jaffe also mentions onetime star Bill Miller, whose fall from investing grace is far less common, according to the columnist.

Awards, Jaffe says, are merely guidelines for which funds might be good choices, not decision makers.

For more information, read the original column here. 

Edited by: Ben Geier


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