Is Investing Really This Complicated?
Nicole Dieker

I’ve been investing in index funds exclusively for years. I’ve yet to read anything that convinces me actively-managed funds aren’t scams. There’s a reason Warren Buffet is the only stock-picker anyone has heard of. He has a good record picking stocks and every other fund manager on the planet doesn’t.

I’m glad people are coming around to realizing there’s no reason to give a fund manager a percentage of your money in exchange for them under-performing the market, which they are much more likely to do than beat it.

“In 2015, all categories of long-term active funds lost a staggering $308 billion, while passive funds (again, largely ETFs) attracted $375 billion.” (source:

Fund managers are salesmen who try to convince people they know what they’re doing with a bunch of intimidating stats that make them look smart. They’re just gambling, and they lose far more often than they win.

“A staggering 86% of active large-cap fund managers failed to beat their benchmarks in the last year, according to an S&P Dow Jones Indices scorecard” (source:

Nicole, investing appears complicated because money managers make a lot of money by overwhelming novices and then convincing them they have the answers. It doesn’t have to be hard. You already know the answer: low-cost index funds.

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