Can amateur investors outperform professionals? As unlikely as it may sound, the data is in the amateurs’ favor.
S&P Global is a top company tracking the performance of professional investors. In September, the company published its biannual SPIVA (S&P Indices vs. Active) report. It showed that over the last 20 years, only 9% of actively-managed large-cap funds outperformed the S&P 500.
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In other words, there are professionals who spend their days buying and selling stocks for their funds. But over the long haul, the investors in roughly 91% of these funds would have been better off just passively investing in an S&P 500 index fund like…
