In the world of finance and investing, size matters in many different ways. For example, what do you do with all the mail you get from your mutual fund companies? You know the stuff. It comes in two sizes. The big catalog size envelope and the small letter size.
The big envelope contains things like semiannual and annual reports or copies of the latest prospectus. A lot of numbers and information. These must be important, right? So if you’re like most people I know, you look at these reports, maybe they sit on your desk or coffee table for a while, and then they probably get stuck in a file somewhere. They’re big, they must be important.
Remember, in general, the large envelope contains information that happened in the past. The small envelope contains information that will affect the future.
Size really does matter.