Magazine

Ask Sallie: Is It Possible to “Beat the Market?” (Video)

By Sallie Krawcheck

Sallie’s answer:

Another way of asking this is, “Is it possible to outperform the market?” In some cases, in actuality ... but I gotta tell you, it’s few and far between.

You’ve heard of Warren Buffett, the world-beating investor. The reason you know Warren Buffett's name is because there’s only one Warren Buffett. There’s only one guy like that, who has a track record like that.

Put another way: Those active managers, who consistently outperform the market over a five-year period? The percent of them that do this is less than one percent. Less than one percent.

And so, while to match the market, to invest in a diversified investment portfolio of low-cost ETFs, might not feel sexy … when you look at it historically, it's been a smart way to invest.


Disclosures

© 2018 Ellevest, Inc. All Rights Reserved.

The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice.

The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person.

Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.

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Sallie Krawcheck

Sallie Krawcheck is the Founder & CEO of Ellevest.