Active fund managers, on average, underperform their benchmark index by approximately their fee. The fee is not an investment in expertise; it is a tax on thine ignorance.
Vanguard's VTI charges 0.03%. Many active funds charge 1-2%. Over 30 years, the fee differential compounds to 30-60% LESS terminal wealth. Thou art paying a manager a fortune for an underperformance.
The S&P 500 index — owning slices of America's largest businesses — has outperformed nearly every active manager who has ever lived, on long enough horizons, after fees.
The Seal of the Chamber
Boring beats brilliant. Cheap beats clever.