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« What Is Life Insurance, Where Did It Come From, and Why Should I Care? | Main | Three Expenses I Thought I Couldn’t Live Without »

September 09, 2010


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Oh yeah, this entry should be interesting.

I've also stated in the past that I'm of the opinion most people should just buy low cost index funds as well.

Come to think of it, so does Warren Buffett:

And again, this is for the average individual who just wants to invest for their future. For the rest of us who are much more interested in this subject matter, then feel free to do something different.

Still though, there have also been studies that prove it's very difficult, even for professionals, to out-perform low cost index funds. Here's an example comparing DFA's well-regarded managed funds versus equivalent Vanguard funds.

I've spoken with Prof. Ed Tower, the author of this white paper before, and his conclusion is that, as good as DFAs are, they still do not out-perform Vanguard index funds in net return.

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