Want to Outperform 88% of Professional Fund Managers? Buy This 1 Investment and Hold It Forever.
You might not think it's possible to outperform the average Wall Street professional with just a single investment. Fund managers are highly educated and steeped in market data. They get paid a lot of money to make smart investments.
But the truth is, most of them may not be worth the money. With the right steps, individual investors can outperform the majority of active large-cap mutual fund managers over the long run. You don't need a doctorate or MBA, and you certainly don't need to follow the everyday goings-on in the stock market. You just need to buy a single investment and hold it forever.
That's because 88% of active large-cap fund managers have underperformed the S&P 500 index over the last 15 years thru Dec. 31, 2023, according to S&P Global's most recent SPIVA (S&P Indices Versus Active) scorecard. So if you buy a simple S&P 500 index fund like the Vanguard S&P 500 ETF (NYSEMKT: VOO), chances are that your investment will outperform the average active mutual fund in the long run.
Source Fool.com
