Most Fund Managers Fail to Beat the Market
There are tens of thousands of full-time money managers and stock market analysts in the world. Most of them consistently underperform a broad diversified index. (Research indicates that up to 89% of fund managers fail to beat the market.)
That’s a lot of invested life energy, for, ehm, not too much to show for it.
After all, the job of an investor is capital allocation. What more precious resource is there than life energy?
If I turn the question around and ask myself if I’d like to be a full-time money manager, and I have asked myself the question, the answer is no.
What’s the point of superior returns, if we spend all our life’s energy pursuing this goal?
Assuming we can get superior returns of course. Most of us can’t.
What if instead of maximizing returns, we tried to minimize input?
Life Energy Adjusted Returns
What if instead of „total returns“ we focused on „life energy adjusted returns“?
Most long-term investing strategies produce “good enough” results. And more often than not, the less we do, the better our results.
This frees up precious life energy that we can allocate differently.
Need for Coaching and Mentorship
There seem to be two groups of people:
- The ones trying too hard and spending a disproportionate amount of life energy chasing superior returns (and failing most of the time)
- The ones not spending enough (or any) life energy to educate themselves and implement a sensible long-term investing strategy
I feel the world would be better off if we had more of group two and less of group one.
Put differently, there might be less need for money management ifself, and more need for teaching and education.
Millions of people need better habits when it comes to personal finance and investing. And millions of people need coaching and mentorship.
This seems like a great career choice and business opportunity, and the reason why I am creating a video course on this topic.
Video Course on Personal Finance
I have created Build Wealth, Buy Freedom, a 2 hour video course.
Many people have asked me “How should I invest” or “How to get good with money.” This is a summary of everything I know. Hands-on knowledge from 15 years of experience.
This is my attempt of a brain download that summarizes everything I know in a 2 hour video.
If you want to improve your financial habits and investing skills, and want to gain more freedom and independence, then my course could be a great fit for you.