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A glance at the major stock indexes over the last year reveals a host of false bottoms and fools' rallies.
Despite Mr. Booth's modesty, many of D.F.A.'s mutual funds have actually outperformed their closest equivalent market indexes over time.
Berkshire sold a form of insurance to buyers who wanted protection from a drop in "four major equity indexes" over the next 15 to 20 years.
For the same reasons that most mutual fund managers consistently underperform market indexes over the long haul, especially after taxes and fees, your adviser is not clairvoyant, either.
While seven of the nine fund categories beat their respective S.& P. indexes over the five years ended Nov. 30, two did not.
No one can predict the future with any regularity, the pair note, so why would you think that active managers can beat their respective indexes over time?
Similar(12)
She turns the index card over and over and over.
Despite the fees, the fund has beaten the Standard & Poor's 500-stock index over the last five years.
BEATING the S&P 500 index over one year could be put down to luck.
They sometimes have gray hair or bifocals or a body mass index over 19".
Some actively managed fund managers do outperform their benchmark index over long periods of time.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com