/biz/ - Business & Finance

[Anonymous No.55759612]

What's the point of active management if they can't beat index funds?

[Anonymous No.55759852]

>>55759612
Money laundering

[Anonymous No.55759857]

>>55759852
Welp that makes perfect sense.

[Anonymous No.55759906]

>>55759612
a hundred men maybe more

[Anonymous No.55759924]

>>55759612
Eventually the music stops and the money printer quits brrr-ing. Then as Buffett says, the tide goes out and you see who was swimming naked. All these tech companies that never turned a profit will implode the Vanguard ETFs that weight by market cap.
Just as planned.

[Anonymous No.55759962]

>>55759857
Never thought about that
You’re probably right

[Anonymous No.55760618]

I would say that the would eventually, but the fact is is that modern portfolio theorists, Bogle-sama and the rest of them, tapped into some kind of fundamental, animalistic nature.

The often repeated speculation that the more adoption of passive indexing that happens, the greater chance active management can exploit inefficiencies for huge profit, sounds true but as proven by this board, no amount of adoption can cure mammalian males from thinking they're smarter and better than everyone else.

There will never be a shortage of goyim chumps, is what I'm saying.

[Anonymous No.55760753]

>>55759612
management fees

[Anonymous No.55760786]

They can perform better than holding the sandpiss in the short term, used for hedging. That's about it