re: Investing Advice for a Noob

quote:

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Fair enough. I would venture to say you don't have to beat the index every year. If your manager can avoid a 2008 type loss and just provide solid returns then you are fine and will come out ahead a lot of times.

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This is the inherent point of the indexer logic. THe chance you pick a manager that can beat or lessen losses in comparison to the index, when you include the costs you pay for him to manage it, are so low you effectively lose every time over any time frame.

Ya, SOMEONE had a managed fund that did well during the burst. But good luck being that guy is the indexer argument.

Sort of like this. I beat the index IF

IF I have a good manager
IF his return is greater than the return of the index
IF this return covers the cost of paying
IF I picked the right fund in the first place in the right assets that did well for any given time period.

IF I'm able to do the above at all times as an "average" investor.