The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/buzman-writes-most-actively-managed-mutual-funds-24434140.aspx

Subject:  Re: Trading in Retirment A/C Date:  8/6/2006  1:08 PM
Author:  intercst Number:  52954 of 76404

buzman writes,

Most actively managed mutual funds fail to outperform their respective index.

Do you think you are better than them?


I agree that few people are successful at active trading. However I was surprised at this analysis by index fund advocate William Bernstein that showed 70% of the 15-stock long-term buy & hold portfolios he examined beating the S&P500 index.

http://www.efficientfrontier.com/ef/900/15st.htm

Of the 98 randonly-selected 15-stock portfolios that Bernstein examined for the period 12/89-11/99, 77 beat the S&P500 return of 18.94% per annum.

intercst

Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us