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Active vs. Passive over the 20th century shows that active management doesn't work for the customer.
by wbl 8y ago
Active vs. Passive over the 20th century shows that active management doesn't work for the customer.
- pmart123 8y agoThat actually is factually misleading. Active has greatly outperformed in foreign securities net of fees: https://www.ft.com/content/d93100ca-acf4-11e6-9cb3-bb8207902122 https://www.ft.com/content/d93100ca-acf4-11e6-9cb3-bb8207902... In domestic markets, active management has not out-performed net of fees, but there are bad people in every profession: https://www.nb.com/pages/public/global/insights/the-overlooked-persistence-of-active-outperformance.aspx https://www.nb.com/pages/public/global/insights/the-overlook... You also have to remember these statistics only look at mutual funds and most of the best investors don't offer mutual fund products. Passive investing should work for many investors. I think fees though are a bigger culprit though than active vs. passive.
- wbl 8y agoYou linked me to a study that eliminated the bottom quarter retrospectively. I too can make money if you let me ignore all my losing trades.