Wall Street Secret #714: Why Active Investing Underperforms
Money Tree Investing
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Why Active Managers Underperform the Market
I think a lot of it has to do with making incorrect predictions about the future, and trying to overcome fees. Beating the market's a really, really hard thing to do. Even if people own an index, they're still actively buying and selling that index. So even though the index is technically the best approach according to historical records, it doesn't mean it will hold true in the future.
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