Burton Malkiel, author of A Random Walk Down Wall Street, gives two main reasons why it's hard to beat the market on a consistent basis. Firstly, markets are efficient and reflect the impact of all known information at the time; and secondly, the costs of active management are higher and, along with the costs of buying and selling, mean that you lose more profit through costs than with passive investing.
Please share this content using any of the share buttons below. Please see this page for guidelines on embedding videos and other content in your own website or online marketing.
It's soo easy to beat the market! Trivial even! Small Cap ETFs are your best bet to beat the market over the long run! If you want to know why that's the case, please read my blog. hikarufinance.blogspot.com/
Is buy-to-let a good investment?
Why evolution has made us bad investors
Do you do it passively?
How easy is it to outperform the market?
Passive investing is favoured by financial commentators
Beating the market and why active funds rarely do so
Does passive work for all types of investments?
All you need to know about investing in three words
Passive investing is better for your health
The importance of risk and return
How much do investors lose in charges and management fees?
Why investments should be like a good marriage
Passive investing: a better experience all round.
Small charges make a big difference to returns
The increasing popularity of passive investing
Passive investing: a good lifestyle choice
The effect of the media on investing decisions
Why is it so hard to outperform passive funds?
What is an index fund?
Why are active funds so much more popular than passive?
Will passive investing become more popular in the UK?
Is 'buy and hold' dead given the dismal returns of recent years?
Do investors buy and sell too often?
Why costs matter
Should investors be worried about today's economic volatility?
The importance of knowing yourself
Why aren't there more investors like Warren Buffett?
The hidden costs of active investing
A short history lesson
Why you don't get what you pay for
Why is it so hard to time market highs and lows?
The best way for busy people to invest
When buying and selling becomes an addiction
How does passive investing help reduce risk?
Why is stock picking like gambling?
Do you need a financial adviser?
Why are new funds always being launched?
Do active fund managers invest their own money in active funds?
The risks of investing everything in emerging markets
Are fund managers as smart as they think they are?
The trend towards passive investing
Should we keep out of the market in turbulent times?
Who are the fund managers who consistently beat the market?
The golden rules of investing
How a financial adviser adds value to your investments
Why is it so hard to pick the next star fund manager?
The FinaMetrica risk profiling system
How are active managers handling market volatility?
Have the past ten years been a lost decade?
Why the finance industry needs to change
Why does the industry want active investing to be the norm?
Why doesn't the media talk about passive investing?
How to choose a financial adviser
Why do we buy shares when we should be selling?
Is it easy to pick the next star fund manager?
Why aren't passive funds promoted more?
Whose side is your stockbroker on?
Why you shouldn't pay an active investment manager
Why is risk profiling so important?
Do investors trade too often?
The role of a wealth management company
How do passive funds compare to active funds?
Will passive investing take off in the UK?
Risk profiles: how they work
What is the Capital Asset Pricing Model?
What are the costs of investing?
What is passive investing?
What impact do charges have?
Why is diversification so important?
The insidious effect of charges
Does Warren Buffett's success mean anything to the rest of us?