2 ms·

Index funds usually outperform the average investor precisely because it stops them from picking and choosing like that.

• robocat 1y ago
  Actually I read the other day that it is because indexes rebalance. If you buy the shares in an index and then hold, your returns are much lower than an index fund that is rebalanced. Unfortunately I can't find reference. I also like this quote: For US stocks, Wu of Sparkline estimates that accounting for intangible assets would cut perceived overvaluation by about 25 to 50 per cent, relative to headline valuation metrics. “While the market is by no means cheap, once firms are given credit for their intangible assets, valuations look far less frothy than the headlines imply,” he says. - https://archive.is/t1On8 https://archive.is/t1On8