Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Topic Author
Taylor Larimore
Posts: 32842 Joined: Tue Feb 27, 2007 7:09 pm
Location: Miami FL
Post
by Taylor Larimore » Fri Mar 24, 2023 1:29 pm
Bogleheads:
A recent
Forbes Article reinforces
The Bogleheads Investment Philosophy of using index funds. Look at these recent statistics:
Over five years , just 13.49% of actively-managed funds outperformed the S&P 500.
Over 10 years , only 8.59% of actively-managed funds outperformed the S&P 500.
*Data as of December 31, 2022
Thank you, Mr. Bogle.
Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Don't look for the needle. Buy the haystack."
"
Simplicity is the master key to financial success." -- Jack Bogle
Charles Joseph
Posts: 2396 Joined: Tue Apr 05, 2022 10:49 pm
Post
by Charles Joseph » Fri Mar 24, 2023 7:59 pm
A great reminder of the absolute futility of active investing. My history of underperformance is also a testament. I am now proud of and grateful for my dirt-cheap Boglehead indexed portfolio.
Thanks Taylor and best wishes to you!
Charles Joseph
"The big money is not in the buying and selling, but in the waiting." - Charles Munger
Brianmcg321
Posts: 1875 Joined: Mon Jul 15, 2019 8:23 am
Post
by Brianmcg321 » Fri Mar 24, 2023 8:14 pm
I don't get the title. Index funds are mutual funds.
Rules to investing: |
1. Don't lose money. |
2. Don't forget rule number 1.
CRC_Volunteer
Posts: 568 Joined: Fri Sep 10, 2021 10:57 am
Location: Southeast USA
Post
by CRC_Volunteer » Fri Mar 24, 2023 8:28 pm
Brianmcg321 wrote: ↑ Fri Mar 24, 2023 8:14 pm
I don't get the title. Index funds are mutual funds.
You can have actively managed mutual funds.
"Let me explain. No, there is too much. Let me sum up." (Inigo Montoya) |
|
65/30/05 | 53% VTSAX | 12% VTIAX | 30% VAIPX | 5% CASH
placeholder
Posts: 8421 Joined: Tue Aug 06, 2013 12:43 pm
Post
by placeholder » Fri Mar 24, 2023 8:43 pm
CRC_Volunteer wrote: ↑ Fri Mar 24, 2023 8:28 pm
Brianmcg321 wrote: ↑ Fri Mar 24, 2023 8:14 pm
I don't get the title. Index funds are mutual funds.
You can have actively managed mutual funds.
Yes but it's like saying "beef vs. meat".
Makefile
Posts: 2657 Joined: Fri Apr 22, 2016 11:03 pm
Post
by Makefile » Fri Mar 24, 2023 8:55 pm
placeholder wrote: ↑ Fri Mar 24, 2023 8:43 pm
CRC_Volunteer wrote: ↑ Fri Mar 24, 2023 8:28 pm
Brianmcg321 wrote: ↑ Fri Mar 24, 2023 8:14 pm
I don't get the title. Index funds are mutual funds.
You can have actively managed mutual funds.
Yes but it's like saying "beef vs. meat".
Index funds and mutual funds due seem in the broader financial media as imprecise terms for index mutual fund and actively-managed mutual fund. It comes up on the Reddit /r/bogleheads a lot also from new posters, obviously hopelessly confused ones. Even financial media will sometimes talk about the shift from "mutual funds" to ETFs as if it's coupled to abandoning an actively-managed strategy.
Brianmcg321
Posts: 1875 Joined: Mon Jul 15, 2019 8:23 am
Post
by Brianmcg321 » Fri Mar 24, 2023 9:00 pm
placeholder wrote: ↑ Fri Mar 24, 2023 8:43 pm
CRC_Volunteer wrote: ↑ Fri Mar 24, 2023 8:28 pm
Brianmcg321 wrote: ↑ Fri Mar 24, 2023 8:14 pm
I don't get the title. Index funds are mutual funds.
You can have actively managed mutual funds.
Yes but it's like saying "beef vs. meat".
Exactly
Rules to investing: |
1. Don't lose money. |
2. Don't forget rule number 1.
dcabler
Posts: 4544 Joined: Wed Feb 19, 2014 10:30 am
Location: TX
Post
by dcabler » Sat Mar 25, 2023 4:25 am
Taylor Larimore wrote: ↑ Fri Mar 24, 2023 1:29 pm
Bogleheads:
A recent
Forbes Article reinforces
The Bogleheads Investment Philosophy of using index funds. Look at these recent statistics:
Over five years , just 13.49% of actively-managed funds outperformed the S&P 500.
Over 10 years , only 8.59% of actively-managed funds outperformed the S&P 500.
*Data as of December 31, 2022
Thank you, Mr. Bogle.
Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Don't look for the needle. Buy the haystack."
I'm guessing you meant the title to be something like "Index Funds vs. Active Funds"...
Cheers
CRC_Volunteer
Posts: 568 Joined: Fri Sep 10, 2021 10:57 am
Location: Southeast USA
Post
by CRC_Volunteer » Sat Mar 25, 2023 8:51 am
dcabler wrote: ↑ Sat Mar 25, 2023 4:25 am
Taylor Larimore wrote: ↑ Fri Mar 24, 2023 1:29 pm
Bogleheads:
A recent
Forbes Article reinforces
The Bogleheads Investment Philosophy of using index funds. Look at these recent statistics:
Over five years , just 13.49% of actively-managed funds outperformed the S&P 500.
Over 10 years , only 8.59% of actively-managed funds outperformed the S&P 500.
*Data as of December 31, 2022
Thank you, Mr. Bogle.
Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Don't look for the needle. Buy the haystack."
I'm guessing you meant the title to be something like "Index Funds vs. Active Funds"...
Cheers
Taylor quoted the article name for the subject name...
"Let me explain. No, there is too much. Let me sum up." (Inigo Montoya) |
|
65/30/05 | 53% VTSAX | 12% VTIAX | 30% VAIPX | 5% CASH
Candor
Posts: 1287 Joined: Sat May 28, 2011 4:25 pm
Post
by Candor » Sat Mar 25, 2023 10:20 am
Yes, but this data is only up to the end of 2022. I have heard 2023 is a stock pickers market.
The fool, with all his other faults, has this also - he is always getting ready to live. - Seneca Epistles < c. 65AD
GreatLaker
Posts: 128 Joined: Mon Jun 12, 2017 7:19 pm
Post
by GreatLaker » Sat Mar 25, 2023 3:56 pm
Candor wrote: ↑ Sat Mar 25, 2023 10:20 am
Yes, but this data is only up to the end of 2022. I have heard 2023 is a stock pickers market.
2023 is a cyclical bear in a secular bull market. You don't want to be indexing in a market like this.
(Crazy stuff advisors say)
1moreyr
Posts: 465 Joined: Sun Jan 12, 2020 6:10 pm
Post
by 1moreyr » Sat Mar 25, 2023 4:21 pm
Thank you for posting Taylor.... Ironically, I read a similar article in the early 90s in forbes! no less and have pretty much invested only in index funds based on this logic since then !
I didn't even know what a BH was but I knew my odds of picking the best mutual fund manager was going to be no better than picking the best individual stock..... It made sense then and it does now..