By Byron Moore, posted September 11, 2017
Originally published in the News Star and the Shreveport Times on Sunday, September 10, 2017.
Q: I have a friend who really likes to talk about his investments. He has an account he manages on his own, and he also has an account managed by a professional. He’s always saying he can beat the pro, but he never fires the guy. I think my buddy may be full of hot air. But shouldn’t a pro be able to beat an amateur? Otherwise, what’s the point?
A: A professional should always add value. Otherwise, as you say, what’s the point?
But whenever I hear someone speaking of investment returns using competitive terminology (so-and-so “beat the market”), I’m most often hearing the opinions of the inexperienced.