"Measuring Active's Underperformance"

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Taylor Larimore
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"Measuring Active's Underperformance"

Post by Taylor Larimore »

Bogleheads:

Larry Swedroe, director of research at BAM advisor services, has written a convincing article showing that index funds outperform most managed funds. This is the important part of his Conclusion:

"Given the overwhelming evidence that choosing actively managed funds is playing the loser’s game—a game that, while possible to win, has odds of success so low that it’s not prudent to even try."

Swedroe: Measuring Active’s Underperformance

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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oldzey
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Re: "Measuring Active's Underperformance"

Post by oldzey »

Thanks for sharing, Taylor!
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman
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TD2626
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Re: "Measuring Active's Underperformance"

Post by TD2626 »

Thanks for sharing - great article!

The article really stressed cost. It's really important to remember how much cost matters - and how fortunate we are to have index funds avaliable to us that cost mere basis points. To me, costs represent money lost forever, period.
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