Jack Bogle: Why I don’t believe in the stock pickers’ market

Jack Bogle: Why I Don’t Believe in the Stockpickers’ Market

When people talk about “the market,” they are usually talking about the U.S. stock market. It’s one of the strongest markets in the world.

Some of the most popular index funds track the 500 American large-caps. These funds own shares in 500 companies in a variety of major industries in the U.S. economy.

Experts suggest that most people can’t beat the market and that they should buy index funds.

An index fund is safer, because with an index fund you are diversified and you’ve minimized your risks.

Can you beat an index fund? Motley Fool develops a game called CAPS to help you figure out. In this stock-picking game, you pick the stocks that you think will “beat the market.”

And the software tracks your stock picks versus the S&P 500 index. Some people believe that after careful practice, stock picks will indeed beat the market over time.

In this video, Vanguard founder Jack Bogle talked about why he did not believe in the stockholders’ market. He suggested that there is no such thing due to the true nature of the stock market.

Warning: This video is to show you John Bogle’s view about the stockpickers’ market. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.

Source: Finance Jane (Shared via CC-BY)