Why Pros Can’t Beat the Market, but You Can
A small part of my investment portfolio is an index fund tracking “the market”, and apparently I’m not alone.
Over the past few years trillions of dollars have flowed into index funds as people realize highly paid professional money managers seldom beat the market.
Bill Mann, after spending eight years running active funds, explained why that’s a difficult task:
“Fund managers are under pressure to be predictable by showing low tracking error, which essentially means funds have to try to beat their...