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I’m not arguing the opposite, but I’m very interested in learning more about this. Can you suggest some references?
by bezout 6y ago
I’m not arguing the opposite, but I’m very interested in learning more about this. Can you suggest some references?
- kgwgk 6y agoThe basic idea is that if you do better than the market - because you have more of the good stocks and less of the bad ones - there may be someone somewhere with the opposite positioning. In this simple model active investors in aggregate cannot do better than the index. Adding transaction costs, fees, etc. they'll do worse - as a group.
- maksimum 6y agoA reference (that lays out the statistical arguments) is "Common Sense on Mutual Funds" by John Bogle.
- bezout 6y agoThanks