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Finance · Episode 3
90% of professional fund managers — with MBAs, research teams and Bloomberg terminals — fail to beat the market over 10 years. The strategy that beats them costs almost nothing and takes 20 minutes to set up. Nobody told you this. Now you know.
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Here's a fact that should stop you in your tracks: 90% of actively managed funds — run by some of the smartest, most well-resourced people on the planet — fail to beat a simple index fund over a 10-year period. Not occasionally. Consistently. Year after year.
An index fund simply tracks a market index — like the S&P 500 or the MSCI World. Instead of trying to pick winning stocks, it buys all of them. When the market goes up, you go up. When the market goes down, you go down. No guessing. No stress. No fund manager taking a 1.5% fee for underperforming.
Because the market, over time, goes up. And every time you try to outsmart it — paying fees, trading in and out, chasing hot stocks — you introduce friction that eats your returns. Index funds remove almost all of that friction. The result is a strategy that has consistently outperformed the vast majority of active investors over long time horizons.
You don't need a lot of money, a financial advisor or a complicated strategy. Mike walks through exactly what you need to know to get started with index fund investing — from picking the right fund to setting up automatic contributions so you never have to think about it again.