Martin wrote:
>> To mitigate risk, invest in index funds. There were plenty of studies 
>> done
>> that over time, active trading is not able to outperform the market.
>>
>
> Depends on who you invest in. Motley Fool's Stock Advisor picks since
> 2002 are up 47%. S&P 500 is down 0.73% over the same time period.

http://en.wikipedia.org/wiki/Index_funds#Economic_theory

"In particular the EMH says that economic profits cannot be wrung from stock 
picking. This is not to say that a stock picker cannot achieve a superior 
return, just that the excess return will not exceed the costs of winning it 
(including salaries, information costs, and trading costs). The conclusion 
is that most investors would be better off buying a cheap index fund."

VItaliy 

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