The Motley Fool
MAY 16, 2024
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.
The Motley Fool
DECEMBER 15, 2024
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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The Motley Fool
JUNE 30, 2024
In 2021, investors paid almost $90 billion in total fees on about $14 trillion of actively managed mutual funds to an industry flogging a product demonstrably inferior to index funds. Thus, shareholders are paying for their expertise. Many investors are looking for above-average returns, but that can be hard to get.
The Motley Fool
SEPTEMBER 2, 2024
It's a quirk of stock market mechanics that makes a simple investment strategy far better than the average actively managed mutual fund. While it might be possible for many professional funds to outperform over the short run, it gets harder and harder as time goes on. There's a big drag on active funds' investment returns: fees.
The Motley Fool
OCTOBER 28, 2024
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.
The Motley Fool
JULY 1, 2023
Actively managed mutual funds have generally underperformed broader market benchmarks. In 2022, exactly 50% of all domestic funds underperformed the S&P 500 index. But in 2021, when the index gained 29%, 80% of funds underperformed. So it's not as if mutual fund managers as a class are just poor stock pickers.
The Motley Fool
MAY 11, 2024
In many ways, Berkshire Hathaway is more like a mutual fund than a traditional company. Using that $182 billion unwisely could do a great deal of damage to shareholders and to Wall Street's perception of Berkshire Hathaway's stock. That's largely because of Warren Buffett's influence on the company.
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