SPIVA®; S&P Indices Versus Active

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.

Detailed Explanation

If you want a detailed explanation of the short block above, see Larry Swedroe’s January 07, 2019 article

Please note that the Monday Morning Millionaire Program contains opinions only. It does not provide any investment advice or endorsements.

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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