95% Of Stock Pickers Can't Beat The Index Funds

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  • sid
    Senior Member
    • Sep 2009
    • 3198

    #1

    95% Of Stock Pickers Can't Beat The Index Funds

    This is not news to anyone who has invested with Vanguard.

    S&P Dow Jones Indices, the “de facto scorekeeper of the active versus passive investing debate,” recently released its SPIVA U.S. Year-End 2017 report (see other reports here for Europe, Latin America, Canada, Australia, India, Japan,...
  • bruce
    Senior Member
    • Sep 2009
    • 3759

    #2
    Get in a good fund. Stay in. Keep buying. Over time, you will make serious money. Got in in 1982. Will retired in 2024 ... maybe ... if I want to. Hard to have imagined what the market would do back in the early 80's. But, it has been ... what ...35 years. Interesting times! Sincerely. bruce.
    " Unlike most conservatives, libs have no problem exploiting dead children and dancing on their graves."

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    • Vern Humphrey
      Administrator - OFC
      • Aug 2009
      • 15875

      #3
      Originally posted by bruce
      Get in a good fund. Stay in. Keep buying. Over time, you will make serious money. Got in in 1982. Will retired in 2024 ... maybe ... if I want to. Hard to have imagined what the market would do back in the early 80's. But, it has been ... what ...35 years. Interesting times! Sincerely. bruce.
      Rule 1, do your homework. Pick the best funds -- which are usually index funds.

      Rule 2, put the max into IRA's -- for a special reason: YOU CAN TRADE INSIDE AN IRA TAX-FREE!

      Rule 3, monitor your investments. When a high performing fund starts lagging, sell it and buy a better one. See rule 2 -- trade inside your IRA and pay no Capital Gains tax.

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      • Mark in Ottawa
        Senior Member
        • Sep 2009
        • 1744

        #4
        If you are going to buy an index mutual fund then you might consider an Exchange Traded Fund (ETF) instead. The management expense ratio (MER) of an ETF is much smaller than that of an index mutual fund. Typically the MER of an ETF is about 0.2% versus about 1.5% for a mutual fund. That difference in cost can make a huge difference in your overall return and essentially you are buying the same invstments

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