The S&P beats 90% of Financial Advisors. Buffet says buy the S&P
90 year return S&P 500 Only a small percentage of financial advisors beat the S&P 500 over the long term. According to CNBC in 2020 S&P only 10% of large-cap equity fund managers outperformed the S&P 500 over a 20-year period. There are a few reasons why it is so difficult for financial advisors to beat the market. First, the market is very efficient, meaning that it is difficult to find undervalued assets. Second, financial advisors have to pay trading costs and other fees, which can eat into their returns. Third, financial advisors are often under pressure from their clients to generate short-term returns, which can lead them to make risky investments. Lastly and most important financial advisors charge 1-2% yearly. In 20 years this equals 20-40% of your assets. It is important to remember that even the best financial advisors will not be able to beat the market every year. For most investors, it is best to invest in a low-cost index fund that tracks ...