When the broad market itself is down 20%, it's easier to beat it, and as of the middle of this year, 49% of large-cap domestic funds were, in fact, beating the market. If you leave your money in an index fund over time, those funds are likely to outperform actively-managed funds, despite the years when actively-managed funds do outperform. If you pick stocks on your own, it pays -- literally -- to take a page from Warren Buffett's playbook, since he's one of the few people with a track record for beating the market. Read More...
When the broad market itself is down 20%, it’s easier to beat it, and as of the middle of this year, 49% of large-cap domestic funds were, in fact, beating the market. If you leave your money in an index fund over time, those funds are likely to outperform actively-managed funds, despite the years when actively-managed funds do outperform. If you pick stocks on your own, it pays — literally — to take a page from Warren Buffett’s playbook, since he’s one of the few people with a track record for beating the market.
