Now I’m not saying anyone can beat the market. Not even most people. But I think if you follow general investing guidelines, actually read/understand financial statements and do your homework that it’s possible to beat the market. I also don’t meant over 1 or 2 years. I mean like 5-10-20+ years.
Here’s my arguments below:
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Most people don’t TRY to beat the market. To beat the market inherently means more risk and volatility. Most retail investors would rather average returns or safer investments and lower returns. Of course they want to beat the market, but they’d rather be safer.
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you see that 90% of active managers also don’t beat the market. I go back to point one, THEY AREN’T TRYING TO BEAT THE MARKET. It also isn’t a fair comparison most managers set up 60-40 which obviously won’t beat the market. But even if only comparing the 60% they aren’t going to be super risky with someone else’s money because if it’s a down year like 2022 the client will get pissed and leave, they know most people can’t handle the volatility.
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large wealth managers: again aren’t trying to beat the market. They’re trying to preserve wealth and be diversified. They’re more likely to invest in RE, PE, alts, stocks, bonds etc. They’re content with 6-8% returns. Preserving wealth is the game.
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the statistics include anyone with a brokerage account, even $1 Robinhood accounts or $0.37 acorn accounts. These people are buying shit penny stocks and have no idea what they’re doing, this is MILLIONS of accounts, they aren’t the same as most people in this sub.
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these statistics include Wallstreetbets members. There’s like 15 million members there, I think it’s being generous to say 1% know what they’re doing. But most active members here know better than to gamble on OTE shit. Or trash meme stocks.
So overall I don’t think it’s impossible for people who TRY to beat the market to actually do it. I believe the statistics, but I also believe that it includes a lot of groups that sway it in a negative direction. I think it really just takes the effort and basic investing strategies.
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