I’ve come across Harry Browne, who is no longer with us, but wrote a very insightful newsletter over the years.

Harry Browne was an American free-market Libertarian writer and the Libertarian Party’s 1996 & 2000 candidate for President of the United States. He was also a well-known investment advisor for over thirty years, author of “Harry Browne’s Special Report” — a financial newsletter published from 1974-1997, author of 12 books and thousands of articles, Co-founder and Director of Public Policy of the libertarian Downsize DC Foundation, host of two weekly network radio shows — one a political and the other a financial show, host of an ETV (internet-based television) show called “This Week in Liberty with Harry Browne” on the Internet based Free Market News Network, a consultant to the Permanent Portfolio Family of Funds, and a popular inspirational public speaker.

I’ve been reading a collection of his works complied into one, Harry Browne’s Investment Strategy –Bookstore As I go through his and other’s work I’ll be posting summaries of what I got out of their work. Most likely I’ll end up taking the various viewpoints and putting them together.

So, on to the title of the post.

Selecting a Mutual Fund
1. Define the investment purpose to be served by the funds you buy.
2. Find the funds whose investment policies match your purpose.
3. Of these funds, narrow the field to those that whose records live up to their policies.
4. Eliminate those funds that don’t stay 100% invested.
5. Of the funds remaining, select those that pay the smallest dividend.