Quote:
Originally Posted by Slava
The "beating the market" discussion is a pet peeve of mine. I have a longer piece on this and if it gets through my compliance department I'll post it here for people who are interested.
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Haha, I definitely look forward to it!
Let me add some context to my statement.
A professional managing a portfolio can do all sorts of great things regarding tax savings etc. that the average person dumping stuff into ETFs will likely not take advantage of. They will also have a far stronger skillset of matching risk to a person's life.
But if we are strictly talking about the self directed investor that is doing it on the side, I stand by my point. Less than 10% of professional fund managers have outpaced the indexes when looking at most studies that have gone longer than 10 years. I truly believe to think that any average Joe, no matter how interested in the stuff, is naive to think that by picking individual stocks they are going to outpace those pros, and therefore outpace the indexes.