https://www.axios.com/2024/12/06/billionaires-sp500-trump-musk-stock-market
It’s all about the skim of “fees, commissions and trading costs”. It’s very hard to beat a low-fee index fund. If you’re employing a financial advisor, you’ll inevitably under preform.
intercst
“… they tend to be concentrated in their own family companies.”
Also, saying a billionaire is underperforming the S&P assumes that the billionaire has the same goals is the average working stiff or even millionaire.
The time frame matters.
The top of the market MIGHT be in soon. If you count the next bottom, then what?
Exactly. Everyone seems to have the S&P 500 as some ultra-powerful measuring stick by which all investors must be judged by. It’s what happened to the Nuremburing ring lap times for sports cars, a stupid measuring stick with little practical use for most people and most cars.
Are the rich even trying to beat the S&P 500? If you have that much money are you really trying to maximize for even more, or do you have (gasp!) other goals? Such as capital preservation, tax minimization, estate planning, etc.?
In the last 10 years I have beaten the S&P 500 7 of those years. My CAGR over that time frame is substantially higher as well (approx 22% vs. 16%). But this year I am lagging the index, it has been on purpose, and I don’t care. It’s because my investing goals are shifting.