Comments on: Saving and Investing: The Difference Between Active and Passive Management http://www.getrichslowly.org/blog/2007/04/19/saving-and-investing-the-difference-between-active-and-passive-management/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Fri, 24 May 2013 10:13:33 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Dylan http://www.getrichslowly.org/blog/2007/04/19/saving-and-investing-the-difference-between-active-and-passive-management/comment-page-1/#comment-84258 Dylan Fri, 20 Apr 2007 00:33:16 +0000 http://www.getrichslowly.org/blog/2007/04/19/saving-and-investing-the-difference-between-active-and-passive-management/#comment-84258 The problem with saying, "actively managed portfolios fail to beat the market 80% of the time," is that it fails to identify what "the time" means. A useful statistic would need to be phrased: actively managed portfolios failed to beat their benchmarks over a 30 year period 97.5% of the time. This statistic is the result of Vanguard founder, John Bogle's study titled, "Bogle on Equity Fund Selection." The http://www.indexfunds.com website is loaded with studies and supporting statistics complied from reputable sources such as Morningstar, Dalbar, the CFA institute, and dozens of notable academics. Remember, 58% of all statistics found on the internet are made up! ;) The problem with saying, “actively managed portfolios fail to beat the market 80% of the time,” is that it fails to identify what “the time” means. A useful statistic would need to be phrased: actively managed portfolios failed to beat their benchmarks over a 30 year period 97.5% of the time. This statistic is the result of Vanguard founder, John Bogle’s study titled, “Bogle on Equity Fund Selection.”

The http://www.indexfunds.com website is loaded with studies and supporting statistics complied from reputable sources such as Morningstar, Dalbar, the CFA institute, and dozens of notable academics.

Remember, 58% of all statistics found on the internet are made up! ;)

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