The Monday Morning Millionaire Program (15.5% annual return since 2012) promotes passive investing. Our survey shows that 37% of our members spend 15 minutes per week managing their portfolio(s) and another 45% spend less than one hour.
Active investors can spend TEN HOURS a day or more, managing theirs!
Over the course of 10 years, fewer than 5% of actively managed portfolios do as well as the Monday Morning Millionaire Program.
There is not a single evidence-based report which shows that the small percentage of actively managed portfolios which do outperform, can do so persistently.
For many, active investing is fun; it might even slow down age-related cognitive decline. It is possible to outperform the market using the methods of active investing, but the odds are extremely poor.
I keep trying, but I only do so in my “fun” portfolio which represents only 5% of my stock market assets.
Compared to my core portfolio, my “fun” portfolio has not been a whole lot of fun.
For positive investing results, passive investing is far better most of the time.
If you want a detailed explanation of the short block above, see Larry Swedroe’s January 07, 2019 article