Great video - no brainer for an average person without any interest in investing. Its only 3 year period, it might be even harder to pick fund over the 10 year (lack of consistency in results), and the paychological aspect of sticking (pulling out at worst times).
Many actively managed funds add more risk considerations of course (in most cases the main reason to have a manager), so this does not include a risk adjusted comparison.
Any thoughts around passive funds being a bubble? Just because they started out performing now doesn’t mean it will continue. I have a feeling stock pickers might make a come back in the near future. Would love to hear your opinion on this. Thanks!
In order for passive investing to be a bubble the underlying index must also be a bubble, and I don't think there's any evidence of that. Other than maybe the valuations of top companies are a little stretched.
Why does the financial industry exist at all then? Makes it seem as though 90% is just an unnecessary tax. What about the political, etc dangers of concentration of power/decision-making?
There's still many people who'd rather have someone else manage their money. If not for emotional reasons also because they just never learned about how investing/markets work. And yes the concentration is a concern but I don't think it's the big conspiracy that it's often made out to be
The InfrapCap10 year graph shows you losing your shirt and holding your breathe waiting to retire. But since Covid, sure its been doing alright.... scray to play around in these waters impo
