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Market Fees Hurt Active Investors
- The stock market is a zero-sum game where active investors often lose out after fees.
- Overconfidence leads many to misinterpret noisy market feedback and overestimate their skill.
Few Managers Beat Costs
- Only 2-3% of mutual fund managers have enough skill to cover their costs.
- Most active managers fail to beat the market after fees and expenses are accounted for.
Choose Low-Cost Index Funds
- Avoid paying high fees for active fund management that rarely outperforms.
- Invest in low-cost index funds or ETFs that track the whole market cheaply and efficiently.