The man who helped us understand the pain of losing
Index investing beats active investing most of the time.
Even Warren Buffett, one of the most famous active investors of all time, tells investors they will be better off than most other investors, even institutional investors, by investing in a cheap index fund.
In Part 6 of this award-winning British video series, we hear how active investment (trying to beat the market) is more costly than passive investment (buying the whole market via in index fund) and therefore the average active investor will under-perform the passive investor. It is simple arithmetic.
This series of short videos (6 to 7 minutes each) describes how many investors are involved in a 'loser's game' where the real winners are the active funds management industry, not the investor.
Of course, there is a better way to invest, an alternative that has become vastly more popular since this video was made in 2014. It is a story about turning the loser's game into a winning game for all those investors that care to listen to the evidence, and act.
View Part 6 of How to Win the Loser's Game video below.
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