Just buy a Vanguard S&P index fund and leave him alone.
“The average relative asking for advice, I say ‘have you heard of this man Jack Bogle? He’s a very nice man,'” the co-founder and CIO of AQR Capital Management said Friday in a keynote speech at the Morningstar Investment Conference in Chicago.
“I think as a starting point, I don’t think (markets) are perfectly efficient. I do think we can do better. He’s an investing hero of mine and I would disagree with Jack on this. But I think it’s a better starting place to believe in Jack Bogle than to believe in eight stocks for many people,” Asness said….
“Do we try to do better than benchmarks? Yes. That makes us active, yes,” Asness said. “When I’m talking about active here, I’m talking about stock pickers. I’m cynical without being dismally cynical about this. But if you find your average stock picker, I will bet a lot that they think the market is way more inefficient than I do….”
“I’ll tell you what a Jack Bogle … would tell you. ‘The averages still can’t beat the average, that’s just math. And if they charge any fee above and you buy the average active manager, you’re going to lose. You have to buy the right active manager.’ They are not wrong,” Asness responded.