Originally Posted by louie aguiar:
Interesting article- stock pickers consistently can’t beat the S&P.
I've come to the conclusion that a big part of this is the massive tech stocks that are so heavily weighted. The only way to beat the S&P for the past several years is to overweight yourself in the FAANGs, which goes against the traditional strategy of diversification. You're either diversified and underperforming the index, or you're overweighted and hoping that none of those stocks melts down. [Reply]
Originally Posted by DaFace:
No surprise. Index funds FTW.
Most people can't outperform the market most of the time.
I read a book that went back and quantified all the expert predictions, etc., and it was like an 80% fail rate.
I mean unless you do a shit ton of research and understand what you are actually reading, and then concentrate your holdings and then hold them for a long period of time, then I agree, index funds and ETFs. [Reply]
Originally Posted by petegz28:
Most people can't outperform the market most of the time.
I read a book that went back and quantified all the expert predictions, etc., and it was like an 80% fail rate.
I mean unless you do a shit ton of research and understand what you are actually reading, and then concentrate your holdings and then hold them for a long period of time, then I agree, index funds and ETFs.
Most say 90%+ fail rate on individual investors beating the market. [Reply]