active v. passive investment strategies?

Re: Active v Passive

It will be great in about 20 years time to review the archives of Askaboutmoney. It will be a historical record of Dogbert's "top of the cyclical pops" with different fund managers appearing to have really cracked active management, only to revert to the norm in time.

If you look at the vote for the SSIA, you will see a lot of the intermediaries opted for the Focus 15 story and it subsequently reverted. Very few opted for New Ireland/BoI at the time. It's just too hard to pick the winners of next year's top of the pops.

Brendan

Active V's Passive

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Brendan,

Does this mean that you are extremely confident that the index tracking SSIA will be top dog in 5 years time(as opposed to the F15)?

Re: Active V's Passive

It means nothing of the sort.

It means that index tracking funds are more likely to outperform their actively managed counterparts. But some actively managed funds will ouperform the average. Focus 15 may well be the best performing fund in 5 years time.

Brendan