Choose lowcost index funds over actively managed funds from "summary" of The Coffeehouse Investor by Bill Schultheis
When it comes to investing, simplicity is key. One of the most straightforward and effective strategies for building wealth over time is to opt for low-cost index funds over actively managed funds. Index funds are designed to track a specific market index, such as the S&P 500, and typically have lower fees compared to actively managed funds. The rationale behind choosing index funds over actively managed funds is that the majority of actively managed funds underperform the market over the long term. This is due to several factors, including high fees, trading costs, and the difficulty of consistently beating the market. By investing in low-cost index funds, you are essentially betting on the overall growth o...
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