Great primer on options for managing your investments. I especially loved this: “You may think it’s a good idea to pick individuals stocks. There is a mountain of research that suggests that is a bad idea.” As I describe here:
I unfortunately managed to prove that to myself!
However, as we discussed in the past (and as I share in the above article), my experience investing in actively managed funds is a counter-example to this: “If we accept that the stock market is relatively efficient then investing in actively managed mutual funds will not give you the optimal outcome.”
Yes, mine is anecdotal evidence, but anecdotes are enough to disprove a claim like that. If you can find enough funds that out-perform the market over the long run, and they then continue to do so for years and years, it’s likely they’re doing something better than the “efficient market” theory believes is possible.
