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What isn't sensible?

Active investing - and why it doesn't work

Active managers attempt to outperform the market by focusing on specific stocks or sectors and pursuing a strategy which is based on maximising profits by predicting market performance - a notoriously tricky, if not impossible, task. Evidence-based investors operate on a long term basis and do not pick stocks according to what's 'hot' or time the market based on predictions or hunches.

By its very nature, active investing involves high levels of trading, and thus higher costs to the investor. Because evidence-based investing is largely a 'buy and hold' strategy, costs are much lower.

Active investors will look to hitch their money to the latest star fund manager, wilfully oblivious to the fact that the chance of any active manager beating the market return for more than a year or two in a row is virtually zero (something Warren Buffet - perhaps the world's most successful investor - will cheerfully admit). Evidence-based investors look to capture market return. Even if active investors succeed in doing the same, investors will invariably be worse off because of the higher costs of active investing.