Investors typically do worse than the average fund because they fail to recognize reversion to...

|By:, SA News Editor

Investors typically do worse than the average fund because they fail to recognize reversion to the mean in their decisions, Legg Mason's Michael Mauboussin says. "They put money in when markets [are] doing well and pull money out when markets [perform] poorly." Maybe investors have learned their lessons, since they're now refusing to buy "when everyone else is buying."