Investing Insights

Why Picking Top Stocks Is Not Enough

Jul 26, 2024
Jack Shannon, a senior manager research analyst at Morningstar Research Services, discusses the struggles of active fund managers in picking winning stocks. He reveals that even with high hit rates, many funds underperform due to high fees and market concentration. Shannon explains how active mutual funds can lag behind passive ones, and he highlights the potential of small-cap stocks for better returns. He also explores the complexities of stock selection, making a compelling case for why amateur investors might benefit from professional insights.
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