One recent Sunday afternoon Larry Swedroe set off a passionate debate on the Bogleheads board when he posted some thoughts about investing skill. Or more particularly its irrelevance.
Swedroe, an avowed proponent of passive investing, wanted to clarify his position. It’s not that investing skill can’t exist, he argued, it’s that if it does, the markets will, over time, erase that advantage. And, just as importantly, that it’s impossible to predict where that skill will show itself. We’re betting against the odds if we try to pick the winning investors (or fund managers). Continue reading