Words of Wisdom and Warning From the Morningstar Conference

I attended the Morningstar Conference in late June and here are my observations:

I arrived a day early to participate in the special session on how to use Morningstar's Principia Pro software and to learn about the company's plans to function as a resource for financial advisers. Morningstar's Paul Fox reflected on some of the firm's finds:

On average, fund returns decrease slightly as the number of holdings decreases. Fox said, "Concentrated managers better be great stock pickers."

...