This episode explains why consistently beating the stock market is extremely difficult, especially for active managers competing in today’s highly efficient markets. It shows how much of what looks like “alpha” can often be explained by exposure to well-documented risk factors such as value, quality, and low risk.
Agenda
Why beating the market is so hard today
What academic research really says about alpha and active managers
How factor investing explains legendary track records like Warren Buffett’s
Practical principles of evidence-based, low-cost, diversified investing
How to apply these ideas when building your own long-term portfolio
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