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Wealth of Wisdom

The Top 50 Questions Wealthy Families Ask

TOM McCULLOUGH | KEITH WHITAKER

Wealth of Wisdom Podcast - Episode 27

Charley Ellis – Is Active Management Still Worthwhile? Part 2 of 2

In this interview, renowned investor Charley Ellis pulls no punches. Active managers, he says, cannot beat the market on a consistent basis. Fifty years ago, Charley argues, institutions did less than 10% of total NYSE trading, and individuals did more than 90%, and beating the market was probable for well-informed professionals. Today, full-time professionals who are constantly comparison-shopping inside the market for any competitive advantage are executing more than 98% of trades in listed stocks, and nearly 100% of derivative transactions, which makes it almost impossible for the average manager or investor to outperform. A fascinating conversation about investment performance, fees, and the future of active management for private investors.

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