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The comment wasn’t that 2% doesn’t matter. It was that even with the 2% from your ugly fund manager you should still just buy index funds
by hklgny 3y ago
The comment wasn’t that 2% doesn’t matter. It was that even with the 2% from your ugly fund manager you should still just buy index funds
- mandelbrotwurst 3y agoThe average fund manager does not underperform by more than 2%.
- hklgny 3y agoThe average includes the over performers
- huijzer 3y agoThe incentive for fund managers is to make as much profit as possible and not care much about losses. If you take into account that fund managers typically blow up every 10 or so years, then they do underperform by more than 2%. Read Taleb's books for more information.