via @OccupyWisdom :
1/ INDEX INVESTING (Log scale & inflation adjusted) All the investment “experts” tout index investing: blindly buying 100s-1000s of minuscule positions, as ideal for the average investor. The below chart shows the sideways movement that this strategy leads to, often for decades
There were times in history the index moved sideways for 5 decades.
You lose for many reasons:
(1) time cost of money
IMO taking time researching great companies is far preferable to blindly investing in everything.
I don’t see the merits of indexing