Money MythBuster: Past performance guarantees results

The second episode in the new Morningstar series explains how there's a lot more to an investment's future than first meets the eye

Ruth Saldanha 4 June, 2019 | 5:00PM

 

 

See more Money MythBuster episodes here

Mr. Morningstar Money Man: A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be. You know who said that? Wayne Gretzky. That's right. The great one. Just because a stock or fund has done well in the past, it does NOT necessarily mean it's going to do well in the future. Past performance is just one of the indicators than an investment is going to do well in the future. We use five pillars to predict what's going to do well in the future. Parent, People, Price, Process, Performance. Past performance is a good starting point, but is no a guarantee of future results! This myth is BUSTED.

About Author

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca