Who has made the money off of Mutual Funds in the last 10 years?
The mutual fund companies and retirement plan "managers" mostly, in the form of management fees and transaction fees perfectly designed to leave just a little margin for making the investment look worth buying. Skimming at its finest.
All I've gotten from the paltry mutual fund offerings in my tax-deferred accounts is the tax deferral. Maybe a tiny percentage gain, but it rarely meets inflation let alone exceeds it. The tax deferral is significant to my personal plans so I'll play along. Otherwise they're a god-awful investment with just as much risk as individual stocks. Why? Herd mentality.
It takes very little to run the entire market up or down these days. Fundamentals are forgotten. The tail is wagging the dog now that government's fiscal policy trumps all business plans.
401K plans are particularly ponzi-schemish. The more people a company can get to participate, the more money the real earners (known as high-income earners in your company 401k plan) can tax-defer. Most people know nothing about the high-income caps nor how they're set. Don't know the rules of the game, prepare to be the sucker at the poker table.
Execs negotiate a salary that makes the most of that deferral, take the rest in via stock grants/options to themselves personally, and usually a trust fund for every child, and one for the spouse. They basically make sure to skim off as much capital every good quarter as their CFO deems the Street won't be cranky about, in the form of multiple income streams. Never just one, so they don't appear greedy.
It's a complex game documented in the 10K and other filings, which anyone can read on EDGAR, but few do.
It cost HP $80 million to oust three CEOs. Think the company could have used the capital more wisely? Think the Board even cares?
The above is about public companies, of course. Cooked books, tasty just the way the Street likes. Don't stand out from any other company in your "sector". We'll make sure you get A+ ratings so mutuals can invest.
Privately owned? All bets are off. You'll never see the real books unless you're an insider. Being an insider at a privately held firm is big big money.