• 0
  • 0

The gist of “I Will Teach You to Be Rich” from Ramit Sethi (vol.40)

The stock market has always gone up over the long term.

Mutual Funds

Mutual funds are an excellent investment choice compared with doing nothing and are prevalent because of their convenience, but because actively managed mutual funds are, by definition, expensive, they’re not the best investment anymore. Every mutual fund manager believes he can beat the market.

Index funds

Index funds are an easy, efficient way to make a significant amount of money. Index funds set a lower bar: No experts. No attempts to beat the market. John Bogle argued that index funds offer better performance to individual investors. The media focuses on the temporarily winning active funds that score the more spectacular bull’s eyes, not index funds that score every year and accumulate less flashy, but ultimately winning scores.

You Might Also Like

Leave a Reply