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

Question

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

Answer 1

That is similar to asking why do casinos make so much money from gamblers. No one believes that casinos are charities and nearly everyone understands that the odds are against them. People are overconfident of their ability. See Dunning Kruger effect.