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Want to Outperform 98% of Professional Mutual Fund Managers? Buy This 1 Investment and Hold It Forever.

The Motley Fool

Professional fund managers tend to be highly educated, hard-working, and extremely smart. But it doesn't take a highly complex trading plan to come out ahead of 98% of professional mutual fund managers over the long run. So, the odds are already against fund managers from the start. Image source: Getty Images.

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This ETF Has Consistently Outperformed 88% of Mutual Funds Over the Past Decade

The Motley Fool

Finding an ETF or mutual fund that can consistently beat the market year in and year out is practically impossible. Wall Street is full of sharp minds that are often willing to share their investment insights and strategies with everyday investors through a mutual fund. That's not for lack of options.

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The Stock Market's as Strong as It's Ever Been, but There's a Catch

The Motley Fool

Unlike most of the time prior to 2000, now you need 20-year holding periods to ensure you're achieving the sorts of reliable returns you'd expect -- and need -- from the stock market. After all, when those dividends are reinvested, the net returns on the right dividend stocks can rival those of some popular growth stocks.

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History Says There's 1 Ridiculously Easy Way to Beat the Stock Market Experts

The Motley Fool

One popular investment approach is turning your portfolio over to a professional fund manager, whose job is to outperform the broader market over time. You might be surprised to know, however, that 93% of large-cap fund managers lose to the S&P 500 over a 20-year period. Clients are basically paying to underperform.

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You Can Outperform 98% of Professional Fund Managers by Using This Simple Investment Strategy

The Motley Fool

And in an ironic twist, the less competitive you are, the better you'll be able to stick with a strategy that can lead you to after-tax returns that beat 98% of professionally managed mutual funds. All you have to do is buy a broad-based index fund and hold it for years. That's why mutual funds charge fees.

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U.S. Money Supply Is Increasing Again and Could Portend a Big Stock Market Move: 2 Vanguard ETFs to Buy Now

The Motley Fool

This could portend a big stock market move. And there are two Vanguard exchange-traded funds (ETFs) to buy that could be especially big winners. It includes physical currency, demand deposits, savings deposits, and money market mutual funds. Its portfolio currently includes 1,403 stocks.

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You Can Outperform 88% of Professional Fund Managers by Using This Simple Investment Strategy

The Motley Fool

It doesn't take an advanced degree or special insider knowledge to do better than the vast majority of actively-managed mutual funds. It's a strategy Warren Buffett famously bet half a million dollars on with the expectation it could beat any hedge fund manager over 10 years. That means mutual fund investors have to pay fees.