We expect the Vanguard 500 Index Fund to surpass the Magellan Fund in terms of net managed assets by late next year or early 2000.

You need to be diversified because you don't know which sector is going to get hit next. Just realize that nothing is ever that easy and that every recession is different.

For the most part, I think it's a good thing. I think funds should report every month. Some fund companies haven't taken advantage of technology to report information.

The SEC has a fairly ambitious agenda. It seems like they have taken on a more shareholder-friendly view.

If someone has the guts to stick it out (in a loser fund), you shouldn't punish them. You should take care of your shareholders. That way you're practicing what you're preaching.

Generally you go with a manager who has a meaningful track record somewhere. It doesn't guarantee this is a smart or good manager, but at least it said I've got a few years and I can learn a lot from that.