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Tim Harford’s Guide To Statistics In A Misleading Age
As Lord Kelvin observed: "Large increases in cost with questionable increases in performance can be tolerated only for race horses and fancy women". Perhaps there might be a few other exceptions.
Good investing advice can be nicely summarized on a postcard. Invest in low cost Index funds and stay the course. This doesn't guarantee success but it greatly improves the odds. Expensive active mutual funds outdistance Index products less than 10% of the time over respectable time horizons like 10 or 15 years. Picking a winner against those odds is unlikely. Many of us persist in that game: lots of luck needed. The professor is on target in this instance.
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As Lord Kelvin observed: "Large increases in cost with questionable increases in performance can be tolerated only for race horses and fancy women". Perhaps there might be a few other exceptions.
Good investing advice can be nicely summarized on a postcard. Invest in low cost Index funds and stay the course. This doesn't guarantee success but it greatly improves the odds. Expensive active mutual funds outdistance Index products less than 10% of the time over respectable time horizons like 10 or 15 years. Picking a winner against those odds is unlikely. Many of us persist in that game: lots of luck needed. The professor is on target in this instance.
Best Wishes