Ann: Funds Under Management - January 2024, page-56

I wish I had a dollar for every time someone said, "active managers will have their day again".

Over 45 years of data that spells out in black and white they fail over 80% of the time in the long term. Yet, here we are - still buying the hogwash fund managers try to sell.

I would implore anyone, next time a manager does their usual, "we will save you when there is a major downturn" tagline - to look at the data.

The data doesn't lie. The rich private school boy pushed into the funds management industry - does.

If you like consistently taking odds of 4 to 1 - carry on your merry way and pick the next star stock picker.

For the rest, buy the index - prevail over 80% of the time - and pay a fraction of a percent for the luxury.

Anyone saying the opposite, doesn't have your interests at heart.