REVIEW: Warren Buffett’s Epic Rant Against Wall Street

Warren Buffett is pretty smart. He knows a thing or two about investing, and he thinks the way to go is passive investing. You don’t need to go out to try and beat the market. In fact, all that will do is cost you money.

The financial services industry is focused on extracting money from clients. This includes everyone from the stock broker down the street, to the mutual fund and hedge fund managers, to the financial media. Everyone is telling you just how you can beat the market, oh and by the way, here’s the bill.

The problem is, you can’t beat the market. There is no evidence that anyone can reliably beat the market on a risk-adjusted basis, except through random, dumb, luck. Buffett (along with a whole bunch of other really smart people) keep telling us this, but very few people actually listen. It’s hard to listen with the investment industry screaming about how easy it is to beat the market.

I don’t doubt that the vast majority of people involved really do think they have their clients’ best interests at heart. The problem is, they’ve been indoctrinated—just like the public—to believe they can beat the market. They’re all really smart, probably graduated at the tops of their classes, so why shouldn’t they be able to beat the market?

However, their self interest blinds them to the fact that they aren’t helping their clients and they aren’t beating the markets consistently, so they go on telling the same stories.

But there is a better way. You can focus on harvesting market returns. No one likes being “average,” but in this case, it actually makes you exceptional. For more on how to make to get the most out of your investments, check out our ebook “Making the Markets Work for You.”

 

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