Best In Wealth - Best Practices For Real People, Investments, Retirement Planning, Money Management, Wealth Building, Financi

CLICK HERE to view "The Results of Conventional Investing" Mutual fund research shows that conventional investing has low odds of success. Over the 15-year period ending in 2017, only 14% of stock managers and 13% of bond managers survived and outperformed their benchmarks. Said another way, 86% of stock managers and 87% of the bond managers who started the 15-year period underperformed their market index. About half of the stock and bond managers did not even survive the 15-year period. Some investors try to improve these odds by picking managers who have outperformed in the past. There’s a significant amount of research into the persistence of manager performance. It shows that among managers that outperformed in the past, only a small fraction continued to beat their market benchmark in the future. Should we be surprised by this poor record of performance? Not really. This makes sense if market prices are the best estimates of actual value. Manager underperformance is not necessarily due to a lack of knowl