“But, Ramit,” you might say, “my fund is different. The manager returned 80% over the last two years!” That’s great, but just because someone beat the market for a few years doesn’t mean they’ll beat the market the next year. Starting in 2000, S&P Dow Jones Indices did a sixteen-year study and found that the fund managers who beat their benchmarks one year had an extremely difficult time getting similar returns the next year. “If you have an active manager who beats the index one year, the chance is less than a coin flip that the manager will beat the index again next year,” said Ryan Poirier,
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