Can active funds really beat an simple index funds?

While statistically active fund managers in the UK and SA tend to do better than their US counterparts. Over time it seems the house (or the market) always wins or index funds out perform active fund managers.

There are a handful of people that have consistently beaten the market. To name a few, Warren Buffett, Ray Dalio and David Swensen. All of which I do not have sufficient funds to access these individuals. I have no idea why people continue to try to pick which fund managers will potentially outperform the market, especially when this based on 20 minutes (probably generous) of research.

Warren Buffett has (now famously) put his money behind this theory in a real life example, not retrospective theoretical application:

the-buffett-bet

Resources:

 

After a period of self discovery in his early 30s exploring topics from Financial Planning to Meditation, Dave asked himself why he only now discovered some of the key critical ideas that lead to a happier, more purposeful, less stressful life. In short more successful.Why wasn’t this taught earlier? He had given away his time in his 20s cheaply. He is determined help others fast track their way to success through coaching, blogging and courses in the academy.He reads extensively and is coached by the best, this is coupled with life experience and degrees in Financial Economics, as well as being a Chartered Accountant.See what he is doing now - http://smarturl.it/DC-Now

Leave a reply: