This. Because time and time again the statistics show over the long term the majority of active managers cannot beat an index fund. COVID-19 market flash crash created some huge opportunities where literally every active manager could easily outperform, materially, the index which artificially fluffed up returns on a 3,5 and 10 year basis. But yet again, they are coming back down. Magellan, managed to significantly underperform during this period, so it’s a real outlier of bad bad performance. They got china wrong.
Whilst I’m a value investor, my holdings tend to be half index constructed, with the remainder being active, to a degree, depending on tax outcomes as well. Average Joe who doesn’t understand nor read financial news religiously is better off buying index funds, less risk than an active manager and less fees too.
MFG Price at posting:
$29.36 Sentiment: None Disclosure: Not Held
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