Horse Laugh Time

Horse laughing

Bashing index funds is a popular theme, but do the criticisms have value?
There are reasons to prefer index funds (now 18% of funds):

  1. Supported by academic research.
  2. Supported by history.
  3. Most active managers don’t beat the index.
  4. Index funds have tax advantages and lower fees.

​A well-meaning blogger touts the CGM Focus Fund as being spectacularly better than the S&P 500.  Let’s give him credit for courage, and then demolish his ideas.

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The Tax That You Ask to Pay

Usually, people want to avoid unnecessary taxes–except for one.  That one they line up to pay, even though it’s a voluntary tax.  Stranger yet, people think paying this tax makes them money.  What strange, upside down world am I talking about?

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