I have just read The Smartest Investment Book You’ll Ever Read by Daniel Solin. In this book he highlights the case against active investment in the sharemarket and instead advocates investing in passive index funds.
He makes a lot of very interesting points – especially how many active fund managers fail to beat the market and deliver poor returns for their clients.
It reminds me of an article I read many years ago about an Australian fund manager known as Mr. $54 billion – because that was the size of his fund. After he retired he said that for all the work and effort and analysis his fund did it was not worth it. His fund managed to outperform the market by only 0.5%.
The books also has many interesting quotes from Nobel Prize winning economists and other qualified investment professionals, but the one I liked best is from Warren Buffett in his 1996 Shareholder Letter:
Most investors, both individual and institutional, will find the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.