Why do as many as 93% of “actively managed funds,” staffed by top professional managers, underperform the market $XRP ?
1. Extreme outcomes among individual stocks $SOL :
A tiny number of “super winners” drive the entire market:
Most long-term gains come from fewer than 4% of all stocks.
Picking winners in advance:
In 2000, AMZN was seen as an online bookseller that only burned cash.
2. Getting out too early:
$UNI When a stock has risen 5x, risk controls or profit-taking may force you to sell and miss the next 50x mega-rally.
Trading friction:
Erodes long-term compounding.
3. Management fees:
With the power of compounding over 20 years, annual management fees of 1%–2% can cause a 2% annual fee to eat away more than 30%–40% of your total return.
Cash drag: You have to keep 3%–7% in cash, and that portion gets no benefit from compounding during a bull market.
4. Herding effect
Chasing short-term hot themes means missing the chance to outperform the market.
But we’re retail investors. Why do you think we lose money?
1. Extreme outcomes among individual stocks $SOL :
A tiny number of “super winners” drive the entire market:
Most long-term gains come from fewer than 4% of all stocks.
Picking winners in advance:
In 2000, AMZN was seen as an online bookseller that only burned cash.
2. Getting out too early:
$UNI When a stock has risen 5x, risk controls or profit-taking may force you to sell and miss the next 50x mega-rally.
Trading friction:
Erodes long-term compounding.
3. Management fees:
With the power of compounding over 20 years, annual management fees of 1%–2% can cause a 2% annual fee to eat away more than 30%–40% of your total return.
Cash drag: You have to keep 3%–7% in cash, and that portion gets no benefit from compounding during a bull market.
4. Herding effect
Chasing short-term hot themes means missing the chance to outperform the market.
But we’re retail investors. Why do you think we lose money?
追漲殺跌與「損失趨避」人性（情緒化交易）
50%
頻繁交易與高昂的摩擦成本
0%
重倉「高風險個股」與「垃圾股」
50%
資訊劣勢與「被動接盤」
0%
2 votes • Voting closed