ASSUMING that the future is like the past, you can outperform more than 80 percent of your fellow investors over the next several decades by investing in an index fund — and doing nothing else.
That's the clear implication of a continuing study of investment newsletter performance conducted for the last 26 years by The Hulbert Financial Digest. Returns of model portfolios constructed according to investment newsletters' advice show that fewer than one in seven newsletters was able to beat the Standard & Poor's 500-stock index over the long term.
Moral of the story, do not follow investment advisor. If you do not have an edge just invest in index fund.
1 comment:
Ah, no wonder you go by "easyguru." Seems simple, huh? Just buy an index, and go fishin'... The amazing thing is the amount of energy, thought, and effort that go into trying to beat the index. Maybe it's the same force that drives folks to play the lotto and go gambling. As an investor, even if you know you're going to underperform the index, at least you believe you have "the chance" of hitting the jackpot.
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