News for hackers. Stuff that matters.

A comment on Vanguard Is Growing Faster Than Everybody Else Combined. Parent comment

Re:Vanguard Is Growing Faster Than Everybody Else Combined by galfarragem on Wednesday April 19, 2017 @04:43AM (#14146366)
Resuming, as I understand it:

Good stock pickers > Index Funds (blind money) > Bad stock pickers

By investing on index funds you are betting in the average of the average (a fund is already an average of undervaluated and overvaluated stocks).

However, by investing on managed funds your probability of having profits over index funds is low: even if stock pickers that beat the market (by definition) amount to 50%, extra fees make most of them still less profitable to investors than passive funds.

[edited]

[ Parent | on HN ]
Re:Vanguard Is Growing Faster Than Everybody Else Combined by VMG on Wednesday April 19, 2017 @05:03AM (#14146422)
> Why not invest on a good stock picker?

You can only tell them after the fact

[ Parent | on HN ]
Re:Vanguard Is Growing Faster Than Everybody Else Combined by galfarragem on Wednesday April 19, 2017 @06:37AM (#14146778)
Sure, but I still prefer to bet on Buffett than on a managed fund that is consistently beated by the market.

[edited]

[ Parent | on HN ]
Re:Vanguard Is Growing Faster Than Everybody Else Combined by spcelzrd on Wednesday April 19, 2017 @08:24AM (#14147197)
Buffett would take the other side of that bet.

http://longbets.org/362/

[ Parent | on HN ]
Re:Vanguard Is Growing Faster Than Everybody Else Combined by GFischer on Wednesday April 19, 2017 @10:08AM (#14147782)
Pretty close to finishing. Is Buffett still winning?
[ Parent | on HN ]
Re:Vanguard Is Growing Faster Than Everybody Else Combined by icebraining on Wednesday April 19, 2017 @06:39PM (#14152432)
He made a recap last year, was winning by quite a bit: https://www.yahoo.com/news/buffett-most-mportant-investment-...
[ Parent | on HN ]
Re:Vanguard Is Growing Faster Than Everybody Else Combined by GFischer on Wednesday April 19, 2017 @09:50PM (#14153338)
Thank you :) . Makes the people investing in Vanguard happier then.
[ Parent | on HN ]