Passive Index Investing is Boring. And it’s Spectacular.

After many years of data collection, passively managed index funds have outperformed their actively managed mutual fund counterparts. A large part of that is the significantly lower fees they command. Another big component is that humans (even the “experts”) are often wrong (and make bad decisions when under duress). Furthermore, study after study shows that those who are less active with investing perform better over time. Even arguably the best investor of all time, Warren Buffett, advocates that amateur investors passively invest. Why? Because emotions like fear and excitement...

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