Baseball and mutual funds; Underrated/overrated stats
Some investors see that a mutual fund has a five-star Morningstar rating, and that's where their analysis ends. But don't assume the winners of Morningstar's beauty contest are worldbeaters. “Some funds that don't have a top Morningstar rating are great bets for superior future performance,” Jacobs says.
Similarly, baseball general managers often prefer handsome, athletic-looking players when those with less appeal often outperform and cost a lot less too.
(Photo: Keith Allison)