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If you do the above then you will outperform. The only reason to invest in an market index is if you just don't want to do any work.

Considering the number of individual investors who fail to outperform the market there has to be more to it than work. If they are just "dumb money" or not willing to put in the work, it still doesn't explain the vast majority of institutional investors that fail to beat the S&P 500 as well.

I don't think it's just a matter of "I want to beat the S&P 500, I will work." and having it happen. There has to be more to it than that. Because if that were the case more people would be beating the S&P 500 I believe.

I have a handful of mutual funds available though my 401k. I put everything in the S&P 500 index fund because none of the others perform better. Not becuase I don't want to outperform.
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