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Originally Posted by l2ridehd
You must be in the very small minority. You can find it just about anywhere from many reliable sources. Google active vs passive investing. Active money managers don't beat the market. Even the very best, Peter Lynch, who ran Magellan fund gave up after 14 years because he admitted he could no longer beat the returns provided by a portfolio of diversified index funds. So if you have one who has done it for 25 years then you are extremely fortunate.
However I do suggest you should compare sometime. Use Morningstar and compare the returns of a 60/40 stock/bond portfolio using your returns and the returns of a total stock/total bond index funds re-balanced annually. And I improve on that by adding international, small cap and REITs, again all very low cost index funds. And read some books on passive investing. Bernstein, Swedroe, Ferri, Bogle, Shiller and French, and others. They all provide documented examples of how passive index fund investing beats almost all active managers.
Yale University has managed its multiple billion $$ portfolio using just index funds, even has a recommended portfolio it publishes, for many years and has been one of the most successfully managed endowment funds ever. Here is a good article on the Yale fund.
The Curse of the Yale Model - Forbes
Be very happy to sit down and discuss it with you sometime, maybe we would both learn something. |
Maybe I missed it, but it didn't seem that the Yale model was a simplistic set of index funds. Rather, the article seems to say that the problem that the other universities had when they tried to replicate the Yale model was that those who served on these other boards lacked the investment knowledge that the Yale board had. For these non-investment savy boards, it would have been more beneficial for them to just invest in index funds. I didn't see where the author stated that the Yale board, with their investment savy, would also do better with the more simplistic approach. Hence, the author left open the possibility that investment savy funds could indeed beat the market.