Quote:
Originally Posted by Stu from NYC
Since the vast majority of professional have a heard time beating the broad market think it is best to invest in mutual funds with good track records or ETF.
|
Absolutely hire professionals for what you are not a professional in, as with most specialty skill sets
That's because there is transactional friction in running a fund. Its not impossible, just very hard. There are also legal barriers which make it harder to beat the market, because advertising as an active mgmt fund, and then being a closet index fund, can and has brought legal trouble to funds. . . however, if you go to the US trading championship, there are many people who easily beat the market handily, but that can't scale to millions.
Financial investing doesn't scale linearly. That is why TV growth has out grown the service capacity of the surrounding area. Build it and they will come doesn't work at scale with bigger competitors next door.