Perfect Example Of Insanity

Perfect Example Of Insanity

“Why do so many people still invest in actively managed funds?” –Robin Powell


Like Mr. Powell, I have also contemplated this question for many years. Every reliable study I have read comes to the same conclusion – the vast majority of actively managed mutual funds cannot consistently beat their passive benchmark. I have not come across one study that contradicts this.

To me, investors who try to outsmart the market using active management are the perfect example of how Einstein defined insanity – doing the same thing over and over and expecting a different result.

That’s why we used a scientific evidence based approach to investing. We use low cost passive index funds to develop globally diversified portfolios. No need to gamble and speculate to capture generous long term global market rates of return.

Check out Robin Powell’s article, Do Any Investors Benefit From Active Management In The Long Run?