Why do people micromanage their investments if S&P500 beats most managed funds in the long term?

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I just don’t understand why someone would risk their money on marginally better gains over the S&P500, when the odds are stacked against you. Also I’m not talking about someone else managing your money, I’m talking about you yourself going the distance by learning about stocks, picking the stocks you think are winners and then trying to capitalize on them.

In: Economics

4 Answers

Anonymous 0 Comments

Beat case scenario: they have knowledge about the industry that helps them make a better guess than a typical investor.

Likely case: they are basically gambling.

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