If a passive investment fund only tracks a market index and provides the market return before its fees, would they even match the market after fees. (How ever low those fees can be) I find it interesting that this is the same compliant passive investing advocates have against active investing. Therefore, are passive investing advocates hypocrites?
In the interest of fairness, I have to also say passive investments don't even come close to the sharpe ratios of the most consistent active investors with over 5-10 years of a track record.
I also want anyone here to address the fact that one of the greatest value investors from the active investing camp Warren Buffett says that others (mere mortals) should invest passively. I suppose, he said that since it takes a lot of effort at investing like him. But on the same light, just passively investing in BRK would've even beaten the market.
Another statement I heard from passive investing advocates is that it is impossible to figure out who will be the consistent asset managers will be in advance. But aren't examples like Joel Greenblat, Carl Ichan and others where by just following their SEC fillings would've beaten the market, evidence for that.
That's usually followed by an argument about how even Warren Buffett too lost money in some periods. But so would the passive investors.
This is not a invitation for name calling like what most passive investing advocates resort to at this point which has been my experience.
Submitted March 22, 2017 at 06:16AM by throwawayMF1988 http://ift.tt/2mTKg1H
