Re: Why Mutual Funds are better than Index Funds
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Why people would invest in an S&P 500 index when you have Berkshire Hathaway B stocks, or some good mutual fund options is beyond me. Those who have indiscriminately invested in indexes thinking you can't do better are as big suckers as those who have purchased sub-par mutual funds.
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You have to remember that the uneducated (with regard to investing) masses may have no desire to educate themselves to find the better opoortunities, that doesn't make them suckers.
Also, even Warren Buffett has been quoted various times as saying that an individual inclined to do their own homework could easily outperform him, as they aren't constrained by the huge size of investments he must make.
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