원문 보기
another issue of course that's happened in the world of stock picking where all this money and effort goes into trying to be trying to be rational is that we've had a really horrible thing happen to the investment counseling class and that is these index funds have come along and they basically beat everybody and not only that the amount by which they beat everybody is roughly the amount of cost of running the operation and making the changes in investments so you have a whole profession is basically being paid for accomplishing practically nothing this is very peculiar this is not the case with bowel surgery or even the criminal defense bar the law or something they have a whole profession or the chosen activity they've selected they can't do anything now in the old days the people in the profession always had some of this problem and they rationalized as follows we are saving our clients from the insurance salesman and the stock broker the standard stock broker for the that serves the active trader and they were saving people from the life insurance salesman and the the the hustling stock broker who liked active trading and i suppose in the sense that the investing class is still saving those people from an even worse fate but it's very peculiar when a whole profession that works so hard and is so admirable and the members of which we are delighted when they marry into our families and they just can't do what the profession is really trying to do which is get better than average results how is that profession handling this terrible situation as index investing gets more and more popular and including by a lot of fancy places i guess very simple answer they're handling with denial they have a horrible problem they can't fix so they just treat it as non-existent this is a very stupid way to handle a problem now it may be good when you're thinking about your own death which you can't fix and just denial all the way to the end but but in all the practical fields of life this problem thoroughly understood is half solved or better coped with so it's wrong to have all these people and just a state of denial and doing what they always did year after year hoping that the world will keep paying them for it even though an unmanaged index is virtually certain to do better it's a very serious problem and think of how much new york say needs a flow of money from finance think of what happened to manhattan or any fees for investment management or trading spreads and so on and so it's a weird situation and of course it's it's unpleasant big investment counseling shops are some of them shrink and some go out of business and the value investors of course so many of i know because we came from that tradition the value investors who are honorable are quitting boom boom boom and what worked for them for years stopped working and they they're honorable people they just quit and they're also rich so it makes it easy but those who aren't richer have a hell of a problem and it costs about fifty thousand dollars to say in manhattan to send your kid to preschool non-deductible and and that's just the start of an endless recession of years of vast expense so if your game is money management you have a serious problem and i don't have any solution for for this problem i do think that index investing if everybody did it won't work but for another considerable period index investing is going to work better than active stock picking where you try and know a lot
Comments 0