This video from Yahoo! Finance features Professor Kenneth French explaining in layman’s English the difference between stock picking and index investing.
About half the actively managed U.S. stock mutual funds beat the market over the past 10 years, or so the headline goes. Does this mean index funds are dead and we should all go active? For the answer, continue reading on Forbes’ website.
David Booth, DFA’s CEO, discusses the relationship between risk and return when applied to retirement.
For the wealthy, index funds have an image problem. They are considered the economy cars of the investing world: they’ll get you there but not in style and you’re always worried they may break down. Anyone at a serious level of wealth, the thinking goes, needs the equivalent of a luxury sedan, with strategic stock choices, hedge funds, private equity, and real estate. It can be argued that while people of modest means are hurt by not saving regularly, wealthy people lose out by chasing the latest, greatest investment… Continue reading in the New York Times.