3 ms·
Not being much of a sophisticated investor (low cost Vanguard funds for me, thank you), I have a question: Isn't the latest common wisdom the notion that money
by msluyter 11y ago
Not being much of a sophisticated investor (low cost Vanguard funds for me, thank you), I have a question:
Isn't the latest common wisdom the notion that money managers actually underperform the market as a whole?
http://money.cnn.com/2015/03/12/investing/investing-active-versus-passive-funds/ http://money.cnn.com/2015/03/12/investing/investing-active-v...
If fund managers -- whom should qualify as sophisticated investors -- aren't doing that well (or at least, can't beat a market index), why would we expect the rich generally to do any better? Is it merely the ability to reap the tax benefits of capital gains/losses?
- UK-AL 11y agoDepends what you mean by sophisticated. Knowing that probably makes you more sophisticated than the average person. I slightly suspect sophisticated here, means insider info...
- harryh 11y agoJust the fact that you are buying low cost Vanguard funds probably puts you in the upper tier of sophistication. You have no idea how many people are just buying individual stocks seemingly at random and then buying and selling them way more often than they should both diminishing their top line gains and paying more in taxes to boot. I think people that do this are the "unsophisticated" people the article refers to.