Quote:
Originally Posted by SeanPizzle
No Bogleheads in this thread? Buy and hold index funds. 90% of managed funds underperform the index over at 10 year period. Picking individual stocks as a retail investor is a fools errand, you will never out trade the machines. You also want to avoid triggering short term capital gains thru active trading, IMHO.
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There is a lot of wisdom in this statement. There are some exceptions but generally speaking, you are entirely correct. I have a cousin who is very rich and successful, as business savvy as anyone I've ever met. And I know people who have created multi-billion dollar companies from scratch. Anywho, he told me years ago about index funds and how he pays some supposed geniuses to manage his money. The geniuses take a healthy commission, maybe 2% IIRC(?)
he said that all of the big money managers claim that they can beat the market and that they never do, over any period of time. He advised me to put my $$ in a good index fund. I wish I'd listened.
