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-   -   The Elegance of Indexing (https://www.early-retirement.org/forums/f28/the-elegance-of-indexing-90459.html)

kgtest 01-22-2018 01:23 PM

The Elegance of Indexing
 
Another pro-indexing article, from the big dawg Mr Shwab himself adding context.
The_Elegance_of_Indexing
https://www.schwab.com/public/file/P-10008929/The_Elegance_of_Indexing_2017.pdf


There’s no shortage of literature discussing the difficulty of outperforming the market on a consistent basis. In the popular book, “A Random Walk Down Wall Street”, Princeton economist Burton Malkiel argued that a “blindfolded monkey” has just as good a chance of outperforming the market as a market professional. While some individual stock pickers do beat the market each year, data from the Schwab Center for Financial Research illustrates how difficult it is for actively managed funds to deliver outstanding results year after year.

:coolsmiley:

Same reasons most here do it I presume, low-cost, simplicity, buy the whole market, and its hard to consistently actively beat market etc.

travelover 01-22-2018 04:02 PM

I'm stickin' with the blindfolded monkey. No need to pay him 1%, he works for bananas.

Red Badger 01-22-2018 07:29 PM

+1.

I'll let others believe they can beat the hoe-down market. I just want to hang outside and pine for a sweetheart that's only trailing a smidge.:smitten:


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