• 4 Posts
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Joined 2 years ago
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Cake day: June 19th, 2023

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  • You can check out SPIVA which tracks the people like the guy you’re paying to predict the future.

    In all markets the results are consistent. Over a single year a professional has about a 50% chance of beating the average. This probability drops over time and over a 10Y period about 10-14% of professional investors beat the average.

    You paying this professional is essentially the same as you thinking that you are able to identify the top 10-15% professional investors. And maybe you just are that great and we should all follow suit. But I doubt it. It’s your risk to take though. No one is going to force you to choose the cheaper option with the better probability to give the best returns.


  • If you’re not putting your money into index funds you’re just fooling yourselves. You shouldn’t be paying any form of investor to pretend they can see into the future.

    This also means you will be investing heavily in the US. But don’t make the mistake of believing your invested money makes any difference in the world when it comes to ethical responsibility. A company isn’t affected by whether a fund invests or does not invest in them.

    Socially responsible funds are just for show because financial institutions have realised it’s something people will pay for. If you truly want to make the world a better place you reduce your monthly saving amount and donate the money to charities instead.