Question of the Day: Over a recent 20 year period, what percent of pros investing in large companies "beat the market?" - Blog
Answer: 94% of investment pros underperformed (see below), so 6% outperformed. Questions: Why do you think investing professionals struggle to "beat the market? Why do you think investors continue to invest their money with professionals despite their record of not being able to "beat the market?" Your friend says "you are better off investing with professionals instead of buying a simple index fund (e.g., S&P 500) that matches the market return." Do you agree or disagree based on the data above? Click here for the ready-to-go slides for this Question of the Day that you can use with your students. Behind the numbers (SPIVA report, 2020): A UNIQUE SCORECARD FOR THE ACTIVE VERSUS PASSIVE DEBATE There is nothing novel about the index versus active debate.