Second thoughts

Back in 1999, I had just started a new job, and got to choose from a bunch of mutual funds for my 401k. This was the first time I had to decide on my own my financial destiny. I couldn't understand all these prospectuses in front of me, but I was a gambler, so I chose whatever funds had recently had the highest percentage of all-time growth.

Sure, past performance not indicative of future returns, whatever. But I was smart. So I chose the highest-performing funds for my 401k anyway. Looking back, of course that wasn't the wisest decision. It broke even again near the end of 2005.

But I think I've learned something from that experience. Here's what I learned: Past performance is not indicative of future returns.