Quote:
Originally Posted by Peter_Spaeth
I am curious, what do you think of John Bogle's thesis (well, not his alone by any means, but one he popularized with Vanguard) that over time only a very very small percentage of funds and fund managers will outperform the S&P 500?
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Well, that has been more or less true historically, depending on what time period you look at, and the general idea is pretty uncontroversial. Even so, all of the funds I cover are actively managed, and the active vs. passive discussion is a lively one in the field. Here is a summary of a panel on the topic at the recent Morningstar Investment Conference:
http://news.morningstar.com/articlen...aspx?id=701870
and a column by my colleague John Rekenthaler about a recent article by Charley Ellis, an indexing legend, in defense of active management:
http://news.morningstar.com/articlen...aspx?id=702065