Investing is a bit like football. If stars are on the team, the price will surely be high, even though it is questionable if the team will win any trophies.
In the investment world, we actually do have certainty: even if you own a "star" investment, over longer periods, hardly any will outperform the market, and even fewer will surpass their benchmark after costs. Consequently, I believe investors are generally better off with a different tactic: choosing passively managed, cost-efficient index products. What are the benefits of index investments? More efficient markets, innovative index concepts First of all, markets have become more and more efficient. The fast spread of information and data as well as immediate market adjustments ha...
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