6 ms·
Well, there's Warren Buffett's famous bet that the S&P 500 (or an index fund tracking it) would outperform hedge funds after all their fees over the course of a
by Tommstein 4y ago
Well, there's Warren Buffett's famous bet that the S&P 500 (or an index fund tracking it) would outperform hedge funds after all their fees over the course of a decade, which he won in a landslide: https://www.cnbc.com/2022/10/03/billionaire-warren-buffett-swears-by-this-inexpensive-investing-strategy-that-anyone-can-try.html https://www.cnbc.com/2022/10/03/billionaire-warren-buffett-s... . There's also something in there about almost all active funds underperforming (84% after 5 years, 90% after 10 years) and being worse than luck.
- palata 4y agoOh, that's interesting. So the best is just to diversify and hope for economical growth, I guess?
- Tommstein 4y agoBasically. Because if you think you can figure out a better investment strategy than Warren Buffett, well, good luck, you're gonna need it. Monkeys, cats, and small children often pick stocks better than the pros: https://prosperitythinkers.com/personal-finance/three-monkeys-and-cat-pick-stocks/ https://prosperitythinkers.com/personal-finance/three-monkey... . In fact, here's the Guinness World Record for a chimpanzee who was the 22nd most successful money manager in America by throwing darts at a list of companies: https://www.guinnessworldrecords.com/world-records/most-successful-chimpanzee-on-wall-street https://www.guinnessworldrecords.com/world-records/most-succ... .
- known 4y ago[dead]