Talking to a stranger on the bus about index funds

I sat next to a guy on the bus who was reading a book on investing. He told me he started with index funds because they are simple and low cost. It made me look into them when I got home. Now I see why people say they are a good start for new investors. Sometimes a random chat can give you the push you need.

2 comments

2 Comments

grayw3212h ago

What if the real win with index funds is how boring they keep everything, so you don't panic-sell? @calebburns' stat on active managers just proves that simple often beats clever.

calebburns1d ago

I read that over 15 years, something like 80% of active fund managers don't beat the S&P 500 index. That fact alone sold me on the basic index fund approach. It really is about keeping costs low and not trying to outsmart the whole market. Those random chats about simple investing are often the most useful.