Jason Zweig

When billions of dollars gush into a small ETF that just reported big gains, more big gains can soon follow. The problem: It's the investor themselves who drive the gains—and who will suffer when their impact fades.

The time seems just right for active stock pickers to beat the market. Why, then, are they doing even worse than usual?

In spring 2008, Paul Rosenau, a construction supervisor and heavy-equipment operator in Waseca, Minn., bought a Powerball ticket—and hit a $59.6 million after-tax jackpot. Rosenau, a devout Lutheran and the son of a pastor, recalls with a tremor in his voice how he and his wife, Sue, felt when they woke up the next morning. “We were very sure [the Powerball jackpot] was divine intervention,” Rosenau recalls, “and we were very sure what we were supposed to do with it.”

Index funds are a great way to match the performance of the market. So why do so many investors end up falling short?

There’s an ETF for nearly everything, but good ones are rare.

You’re Not Paranoid. The Market Is Out to Get You.

Richard Whitacre transferred his entire 401(k) into an account offering a ‘guaranteed’ 15.25% return. Will he ever see his money again?

The probes focus on Next Level Holdings and Yield Wealth, which offered investors the promise of double-digit returns.

A look at 10 of the legendary stockpicker’s early investments reveals his diligence, his patience—and his willingness to bet big.

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