Sensible Investing TV: How to win the Loser’s Game, part 8

Screen Shot 2016-02-23 at 10.22.29 AMSensible Investing TV has posted part 8 of its How to Win the Loser’s Game series of videos, which you can view by clicking here.

Does it make sense for the average investor to invest in an active fund? The active investor who does invest in an active fund has to expect to lose relative to a passive strategy.

If an active investor chooses to overweight some stock then at least one other active investor has to underweight that stock. One might win by overweighting; but if he wins, he loses by underweighting. So it’s a zero sum game before we start thinking about costs.

What we see over and over again is that active trading costs money and active managers charge a lot for their services. One of them might have been brilliant but to the extent that one of them is brilliant, another person must have been whatever the opposite of brilliant is here …  Minus brilliant.

After watching the video if you want to learn more, download the free guide, 12 Essential Ideas For Building Wealth.


paul_2-1500x994“If you are serious about investing and building wealth the video documentary series ‘How To Win the Loser’s Game’ is a must-see. It’s excellent.” — Paul Philip, Financial Wealth Builders Securities

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