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**DaFace** · 07-27-2017, 12:28 PM

It's not anything new if you already have read up on index fund investing, but here's an interesting podcast about it.

Freakonomics - The Stupidest Thing You Can Do With Your Money

The main points:

A study found that only the top 2 to 3 percent of active-fund managers had enough skill to cover their cost.
Over the past decade, according to The Wall Street Journal, “between 71 and 93 percent of U.S. stock mutual funds either closed or failed to beat their closest index funds.”
If the market return is 7 percent and the active manager gives you 5 after that 2 percent cost, and the index fund gives you 6.96 after that four basis point cost — you don’t appreciate it much in a year — but over 50 years, believe it or not, a dollar invested at 7 percent grows to around $32 and a dollar invested at five percent grows to about $10.

07-27-2017, 12:28 PM	#1149
DaFace Kind of a mod Join Date: Aug 2005 Location: Donkey Land Casino cash: $-1633101	It's not anything new if you already have read up on index fund investing, but here's an interesting podcast about it. Freakonomics - The Stupidest Thing You Can Do With Your Money The main points: A study found that only the top 2 to 3 percent of active-fund managers had enough skill to cover their cost. Over the past decade, according to The Wall Street Journal, “between 71 and 93 percent of U.S. stock mutual funds either closed or failed to beat their closest index funds.” If the market return is 7 percent and the active manager gives you 5 after that 2 percent cost, and the index fund gives you 6.96 after that four basis point cost — you don’t appreciate it much in a year — but over 50 years, believe it or not, a dollar invested at 7 percent grows to around $32 and a dollar invested at five percent grows to about $10.
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