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Investors should focus on lowcost, passive strategies from "summary" of A Random Walk Down Wall Street by Burton Gordon Malkiel
The idea of focusing on low-cost, passive strategies is rooted in the belief that actively managed funds generally do not outperform the market consistently over the long term. Research has shown that actively managed funds often fail to beat their benchmarks after accounting for fees and expenses. This is due to the fact that actively managed funds have higher costs associated with research, trading, and management fees, which eat into returns. On the other hand, passive strategies seek to replicate the performance of a specific market index, such as the S&P 500, by holding a diversified portfolio of securities that mirror the index. These passive strategies have lower costs compared to actively managed funds because they do not require extensive research or frequent trading...
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