Quote:
Originally Posted by Slava
Aside from the fact that what you describe is active management, I think that beating the market is only important for marketing and an academic argument. In reality, when the rubber hits the road, if you beat the market and don’t manage to meet your goals, it’s entirely irrelevant.
And the whole “active management can’t beat the market” argument is just full of holes. There are dozens of arguments for why people should pursue active management of their portfolios.
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There are good reasons not to, as well. There are little to no protection for investors when their active manager behaves immorally or illegally. Sure maybe one day you read a news story about how they were reprimanded, fined, whatever, but you, who have one chance at retirement savings success? Ya, that ship sailed with their maleficence. So it ultimately comes down to "do you trust this single individual with your future?" And given how people are these days, I think that's a pretty big leap. Please don't take that personally, it's just my experience.
I have no doubt there are good and bad out there, but that's not a risk I'll ever take again. Not when the alternatives are pretty good, and vastly outperform the half dozen or so "experts" I had before.