Thus spake Zarathustra

The Cornerstone Funds Are Sucker Bets

My math was wrong....

I wrote: "The "sucker" buying in at a 75% premium and holding forever will realize an ongoing return of about 5.1% (9%/1.75=5.1%).

Actually, the math is more complicated, and a 75% premium level is just too high. If the portfolio total return is 9% after expenses, a 23% premium will provide a long term, tax advantaged return of 5.1% . Paying a 75% premium and holding forever results in a 0.0% net long-term return, not 5.1%.