I had the exact same reaction when I was selling life insurance. My (extremely brief) insurance career was filled with “waaaaait a second...” and today I thank god I didn’t actually manage to sell anything 😂.
During my early investing years, I favored actively managed mutual funds over index funds expecting better returns. Well the research you mention above tells you how that story turned out. Once I transitioned to low-fee, index funds, I have not looked back. I have a few tax free accounts where mutual funds are the only investment options and I now only use index funds in those accounts. I check in on those accounts quarterly, especially the international index fund to understand if there was any major shift in regional and country holdings/allocation. Additionally, I use my quarterly, macro-economic mapping to decide how much to allocate to each sector and when.
Great read. The main reason I never used to invest in index funds was because I had no idea they were a thing until I was about 30. Then I was scared to invest for a few more years because I knew it would go down as well as up.
Literally no one I know IRL invests in index funds for those very reasons. It's why your work is so important - you've got huge swathes of the population who don't even know what the hell an index fund even is!
Currently reading your book “Rational Investor”. Nice easy read, makes total sense. Footnotes are a bonus.
I had the exact same reaction when I was selling life insurance. My (extremely brief) insurance career was filled with “waaaaait a second...” and today I thank god I didn’t actually manage to sell anything 😂.
During my early investing years, I favored actively managed mutual funds over index funds expecting better returns. Well the research you mention above tells you how that story turned out. Once I transitioned to low-fee, index funds, I have not looked back. I have a few tax free accounts where mutual funds are the only investment options and I now only use index funds in those accounts. I check in on those accounts quarterly, especially the international index fund to understand if there was any major shift in regional and country holdings/allocation. Additionally, I use my quarterly, macro-economic mapping to decide how much to allocate to each sector and when.
Cheers, Ben!
Great read. The main reason I never used to invest in index funds was because I had no idea they were a thing until I was about 30. Then I was scared to invest for a few more years because I knew it would go down as well as up.
Literally no one I know IRL invests in index funds for those very reasons. It's why your work is so important - you've got huge swathes of the population who don't even know what the hell an index fund even is!
Love index funds!