The Cult of Committee

Dodge & Cox lays waste to the notion that individuals make better investing decisions than groups

Eros Hoagland / Redux for TIME

Vice President of Dodge & Cox Funds, Roger G. Kuo, left, before his meeting with David Hoeft, right, to discuss investment ideas in their San Francisco office on July 10, 2007.

The money managers at Dodge & Cox have heard the adage that a camel is a horse designed by committee. They politely disagree. Their horse, you see, keeps winning. Each of the firm's four mutual funds has from nine to 18 portfolio managers, and every one gets equal say in which stocks and bonds to buy and sell. "The investment business is permeated with the lore of the individual. We think that's a bad way to manage money," says CEO John Gunn, one of many decision makers. "There are a zillion independent variables, and it's very hard for one person to...

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