Active management rarely outperforms the market from "summary" of John Bogle on Investing by John C. Bogle
The prevailing myth is that active managers have the skill to outperform the market consistently. However, the reality is quite different. When we examine the evidence, we find that the vast majority of active managers underperform the market over the long term. This is not a matter of opinion, but rather a fact supported by decades of data.
Numerous studies have shown that actively managed funds tend to have higher fees and expenses compared to passively managed index funds. These costs eat into returns and make it even more challenging for active managers to outperform the market. While some active managers may have short-term success, very few are able to sustain that success over the long term.
The efficient market hypothesis suggests that stock prices ...
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