Finance and Economics > Investing and Saving

Index vs Actively Managed Funds

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ModernSurvival:

--- Quote from: tallfoo on February 22, 2009, 03:36:30 PM ---Despite the state of the stock market right now, index funds on average get better returns than actively managed funds.  Enough said.

--- End quote ---

I highly suggest you read the entire thread.  Enough said,  ;)

FreeLancer:

--- Quote from: Stein on December 15, 2008, 12:01:24 PM ---Just wondering who is a fan of Index Funds vs funds actively managed by someone?  No, this isn't a follow-up from the market timing debate, IF you decided to buy, what do you typically buy?

Myself, I have turned from active to index funds almost exclusively.  After reading a few books by Bogle (Vanguard founder), it really makes sense to me to seek the lowest cost way to invest.  This article also makes a pretty strong argument for regression to the mean.

--- End quote ---


Vanguard founder and father of retail index investing, Jack Bogle, died today, so I found the oldest forum post that mentioned him.

I owe a lot to him, especially the buy and hold mindset that has paid off handsomely over the last decade.

Apologies to the other Jack, but I’m glad I listened to Bogle.

David in MN:

--- Quote from: FreeLancer on January 16, 2019, 09:37:04 PM ---
Vanguard founder and father of retail index investing, Jack Bogle, died today, so I found the oldest forum post that mentioned him.

I owe a lot to him, especially the buy and hold mindset that has paid off handsomely over the last decade.

Apologies to the other Jack, but I’m glad I listened to Bogle.

--- End quote ---

He will be missed. He wrote the introduction to my copy of The Intelligent Investor and I have found his value and dividend approach very helpful. I take no shame as an active trader in admitting I hold Vanguard funds. I have also mirrored some of his funds by buying the 10 holdings at times. Bogle wisely saw the problem with mutual funds is the load and single handedly fixed the industry. Sucks that I'll have to pass on to have a beer with him; he was on a short list of heroes.

Captain Obvious:
S&P500 index is probably best for most people.  Throw in a bond fund and maybe a foreign markets fund and that's probably all you need.  But most S&P500 companies are already global so I don't see much of a need to pay the higher fees associated with foreign funds.  If the U.S. market goes down compared to the rest of the world, KO will still probably be selling drinks overseas so in my opinion you already have global exposure if you have KO.

Personally,  I'm a fan of dividend growth investing because I'm much more interested in a steady source of growing income as opposed to hoping the market maintains itself when I finally get to my retirement years.  If 2008-09 happens all over again and it happens to be my first year of retirement, I'd be PISSED.

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