The investment business is no different. I remember the early 90's telling people that they needed to buy this particular stock because well, it wasn't microsoft but similar knowing full well that similar is not the same thing but I cashed the check anyway.
I just read a wonderful article on wsj.com stating that a great deal of newsletter writers mislead investors regarding their record by comparing their record to the Dow Jones 30 or the S&P 500 without dividends. That like me telling you I shot 68 yesterday playing golf which is true except I left out that I played only 15 holes!
Investors need to be very careful about who they allow to handle their money. I personally think the best person for the job is the person who cares the most about your money - YOU!
You can read the Wall Street Journal article here.