"If professionals do indeed have the game rigged in their favor, we should see evidence of that in terms of better performance. Yet consistent professional outperformance is nowhere to be found. It doesn't matter whether you look at institutional investors, pension plans or hedge funds, the evidence is the same.
If the evidence isn't enough, perhaps you should consider the advice from three legendary investors."
Peter Lynch
"[Investors] think of the so-called professionals as having all the advantages. That is total crap. ... They'd be better off in an index fund."
"[Investors] think of the so-called professionals as having all the advantages. That is total crap. ... They'd be better off in an index fund."
Warren Buffett
"Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals."
"Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals."
David Swensen
"Unless an investor has access to "incredibly high-qualified professionals," they "should be 100 percent passive -- that includes almost all individual investors and most institutional investors."
"Unless an investor has access to "incredibly high-qualified professionals," they "should be 100 percent passive -- that includes almost all individual investors and most institutional investors."
The above is pulled from larry Swedroe's CBS Moneywatch column on 2/13/2012.
For the full column:
http://www.cbsnews.com/8301-505123_162-57374574/is-investing-rigged-to-favor-pros/?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+LarrySwedroeMoneywatch+%28CBS+Moneywatch+-+Larry+Swedroe%29&utm_content=Google+International
