tag:blogger.com,1999:blog-5433839636644874439.post4048589812501326296..comments2024-03-04T13:37:11.022+00:00Comments on Canadian Financial DIY: Why Pros Will Not Automatically Outperform DIY InvestorsCanadianInvestorhttp://www.blogger.com/profile/05645767559302303541noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5433839636644874439.post-88040410471525047392008-08-27T17:36:00.000+00:002008-08-27T17:36:00.000+00:00Yes CC, a variation of that thought is what led me...Yes CC, a variation of that thought is what led me to decide to ditch actively managed mutual funds - instead of researching stocks myself, I had the time and effort of researching managers. Either one should go direct to stocks oneself or not do it at all and just go for passive indexing.<BR/><BR/>And yes, MJ, the pros are probably just as subject to human behaviour failings as we individuals, only maybe not the same ones.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-52932772295246019782008-08-27T15:56:00.000+00:002008-08-27T15:56:00.000+00:00Thanks for the mention. The paradox with hiring so...Thanks for the mention. The paradox with hiring someone for managing your investments is that you'll need some knowledge of managing money to tell if they are any good. But if you had that knowledge, you don't have to hire an investment advisor anymore!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-65279364795417442432008-08-27T14:53:00.000+00:002008-08-27T14:53:00.000+00:00Good post. I agree that uncertainty about the fut...Good post. I agree that uncertainty about the future is a big reason why pros can't beat the index. Another reason is the incentive structure that many pros work within. Many are closet indexers making only small bets because they get to keep their jobs as long as they don't underperform too much. Why bother taking risks to go for big returns if you'll be fired when things go badly?Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.com