A study done by Cambridge University once again demonstrates why the vast majority of money managers who attempt to outperform markets by choosing certain stocks or engaging in market timing, simply fail. And, by building beautifully diversified portfolios of low-cost asset class funds (or at least low-cost index funds), one can avoid playing the loser’s game of speculation, which is at the root of active management and unfortunately how most continue to invest.
Please enjoy this brief, 3-minute video.