How to win at investing – Video 6/10

Posted by Robin Powell on June 21, 2016

How to win at investing – Video 6/10

Win at investing.

The fund management industry won’t tell you this, but all the evidence points to the humble index fund being the most appropriate investment vehicle for the vast majority of people.

But in fact, the superiority of indexing isn’t based on theory but on mathematical fact. Because of the considerably higher costs entailed with using actively managed funds, the average passive investor must outperform the average active investor.

Perhaps surprisingly, one of the most outspoken advocates of index funds is the most famous active investor of all, Warren Buffett. “When the dumb investor realises how dumb he is and buys an index fund,” Buffett once said, “he becomes smarter than the smartest investors.”




How to Win the Loser’s Game was commissioned by Barnett Ravenscroft Wealth Management and is hosted on Sensible Investing TV.

 

ROBIN POWELL is a freelance journalist and the founding editor of The Evidence-Based Investor. Based in Birmingham, England, he founded Ember Television and Regis Media, and he specialties in helping disruptive financial firms to grow. He also campaigns for a fair, transparent and sustainable investing industry. You can follow him on Twitter at @RobinJPowell.

 

COPYRIGHT

Regis Media owns the copyright to all of TEBI’s content, and republishing any of it without permission is strictly prohibited. We will take appropriate action in the event of any infringements.

Financial advisers may wish to note that we allow selected firms to use our investor education content under licence, and that we also produce original and customised articles and videos. Visit our website for further information.

 

 

Robin Powell

Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.

Read more...

How can tebi help you?