Index funds are the smart way to invest

[Mandala]

The reasons are straightforward

No cost like brokers, mutual funds do.

It is impossible to beat the market other than through short-term luck. So why pay someone ?
They take 2% so they now have to beat market by 2% to break even. This will not happen over long term. It is a smoke show by those who claim otherwise.

Anyone disagree?

 

[oil&gas]

I can see one scenario of the near future where it is possible to beat
the market. If the market is on a downtrend over the next decade a
basket of low risk dividend stocks may emerge as the winner.

 

[speakercontrols]

All true. My only reasons is that the dividends tend to be lower than the underlying stocks. I prefer the income so...I just buy the stocks. Besides, there are really only 15-20 stocks that I'd buy on the TSX and data (somewhere, too lazy to look) says that this is close enough to emulate the index anyway.

Please don't mention CC ETFs. Ya, I've seen the arguments but I'm waiting until a really good -40% crash to see how they hold up.

 

[fall]

I can see one scenario of the near future where it is possible to beat
the market. If the market is on a downtrend over the next decade a
basket of low risk dividend stocks may emerge as the winner.

Do not confuse "ex post" with "ex ante."

 

[tastingyou]

All true. My only reasons is that the dividends tend to be lower than the underlying stocks. I prefer the income so...I just buy the stocks. Besides, there are really only 15-20 stocks that I'd buy on the TSX and data (somewhere, too lazy to look) says that this is close enough to emulate the index anyway.

Please don't mention CC ETFs. Ya, I've seen the arguments but I'm waiting until a really good -40% crash to see how they hold up.

Covered Call ETFs NEVER EVER keep up to the stocks or indexes that they represent if the market is going up at all. And in down markets , yes you get your distribution , but the ETF is decreasing in value . In a long term bear market they may even have to cut distributions. And the fees are higher. In my opinion you are better off avoiding these.

 

[speakercontrols]

Covered Call ETFs NEVER EVER keep up to the stocks or indexes that they represent if the market is going up at all. And in down markets , yes you get your distribution , but the ETF is decreasing in value . In a long term bear market they may even have to cut distributions. And the fees are higher. In my opinion you are better off avoiding these.

yup, plus it appears that the OVERALL rate of return is lower than normal ETFs despite the 'fantastic' $ distributions.

I suppose if you really, really value your income over your overall NET $, they have a place. I just don't think they're for investing purposes.

 

[Ponderling]

I have had money in Vanguard VTI etf for s&p 500 index exposure.
A very inexpensive to own vehicle.
I have had funds in this one for more than 15 years, I think.

 

[speakercontrols]

I have had money in Vanguard VTI etf for s&p 500 index exposure.
A very inexpensive to own vehicle.
I have had funds in this one for more than 15 years, I think.

not so much this year compared to the TSX but for the last 15 years? You're a rich man

 

[oil&gas]

You may become filthy rich over the next 15 years if you put your money
into inverse equity ETFs or even better 3x leveraged & inverse ETFs.

 

[stinkynuts]

Avoid the S&P and QQQ, and related index funds. They are WAY overvalued due to the AI hype. People have been blindly buying these index funds because they have worked in the past. However, that no longer applies.

Best best is a Value etf such as VTV, or BRKB.

Other strategy is to invest in foreign index funds. Some good ones are VEA and VCE.

Mohnish Pabrai is a billionaire investor, the Indian Warren Buffet. His advice is excellent.

How to Turn a $10 000 Investment to $1 000 000-Mohnish Pabrai

Learn more about investing by watching this video: https://youtu.be/Vbz3Rl22Jgk

www.youtube.com

 

[Ponderling]

On Oct 2025 I bailed on VTI and moved to VBR, a small cap value focussed USD ETF. AI bubble has S&P overheated in my opinion.
I have been in VBR before
No huge gains, but a safer port to ride out what I perceive a choppy sea for the the S&P coming in the modest near term future.

 

[Ceiling Cat]

It is impossible to beat the market other than through short-term luck. So why pay someone ?
Anyone disagree?

Not True.

The banks take your money and make 300-500% and pay you 3-4%, they have people that know how to invest.
Take a look at the Ganja thread. see what I have done just on Monday.

 

[Mandala]

Not True.

The banks take your money and make 300-500% and pay you 3-4%, they have people that know how to invest.
Take a look at the Ganja thread. see what I have done just on Monday.

What thread?

you are saying the banks will invest your money for yiou ?

they most certainly will through funds and they will accept high value investors and use info from the funds to invest for you plus use private corporations to invest in that funds cannot dot

but i question they can beat the market on your behalf

show me the money

 

[speakercontrols]

but i question they can beat the market on your behalf

Exactly. There seems to be this meme going around that, "oh, when you hit $x million, you can go to banks and/or private equity and they'll make all these fantastic % returns for you". You know, I doubt it. As you said, odds are that they're not going to beat the market.

...the latest 10-year SPIVA report for Canada...




Mind you, the results for the US are better. Imagine beating the S&P500 which is around 10% for the last 100 years (but 6.9% when taking into account inflation). However, the odds are still low that they're going to beat the S&P.

 

[God of War]

Just buy BMO ETFs and get paid monthly dividends.

BMO Announces Cash Distributions for Certain BMO ETFs and ETF Series of BMO Mutual Funds for November 2025

BMO Asset Management Inc., as manager of the BMO ETFs, and BMO Investments Inc., as manager of the BMO Mutual Funds, today announced the November 2025 cash for unitholders of BMO ETFs and...

newsroom.bmo.com

 

[gf1288]

Avoid the S&P and QQQ, and related index funds. They are WAY overvalued due to the AI hype. People have been blindly buying these index funds because they have worked in the past. However, that no longer applies.

Best best is a Value etf such as VTV, or BRKB.

Other strategy is to invest in foreign index funds. Some good ones are VEA and VCE.

Mohnish Pabrai is a billionaire investor, the Indian Warren Buffet. His advice is excellent.

How to Turn a $10 000 Investment to $1 000 000-Mohnish Pabrai

Learn more about investing by watching this video: https://youtu.be/Vbz3Rl22Jgk

www.youtube.com

This is great advice, thank you very much. Fully agree that AI is way over valued in the SP500...

 

[Mandala]

Avoid the S&P and QQQ, and related index funds. They are WAY overvalued due to the AI hype. People have been blindly buying these index funds because they have worked in the past. However, that no longer applies.

Best best is a Value etf such as VTV, or BRKB.

Other strategy is to invest in foreign index funds. Some good ones are VEA and VCE.

Mohnish Pabrai is a billionaire investor, the Indian Warren Buffet. His advice is excellent.

How to Turn a $10 000 Investment to $1 000 000-Mohnish Pabrai

Learn more about investing by watching this video: https://youtu.be/Vbz3Rl22Jgk

www.youtube.com

Since its inception in 1999 Pabrai Investment Funds



S&P 500 (1999 → 2026)

• Total return: 785.61%
• 8.4%

Pabrai Investment Funds (1999 → 2024/2025 range)

• Total return: ≈517% (publicly reported figure)
• :6.7% after fees
  
  
  Buffet constantly says just invest in S&P and forget
  
  Pabri takes 25% of profit after it beats last year by 6% and beats the previous high
  
  beats normal mutual fund charges but S&P index fund charges .1% or as close to nothing as it gets
  
  
  
  without 25% performace fee he matched the S&P
  
  he has had 25 years to beat S&P
  
  and has lost you 1.5% annualized return after performance fee so he is brilliant??????????? by what metric can you trust his foresight !!!!!!!
  
  now look at this chart where he falls waaaaay short of his mentor Warrne Buffet (BRK) so just buy some BRK ???
  
  
  
• Comparison: 1999 → 2026 Annualized Returns
  

  Investment	Annualized Return	Source
  Berkshire Hathaway (BRK.B)	≈10.9%
  S&P 500	≈8.41%	(from earlier S&P total‑return data)
  Pabrai Investment Funds (after fees)	≈6.7%	(based on reported 517% total return)

• 
  
  

even crazier


Total Return Since 1965

• Berkshire Hathaway: ~5,500,000%
• S&P 500 (with dividends): ~39,000%

Annualized Return (CAGR)

• Berkshire Hathaway: ~19–20% per year
• S&P 500: ~10% per year

Pabri is not even within flying distance of Buffet

 

[God of War]

Since its inception in 1999 Pabrai Investment Funds



S&P 500 (1999 → 2026)

• Total return: 785.61%
• 8.4%

Pabrai Investment Funds (1999 → 2024/2025 range)

• Total return: ≈517% (publicly reported figure)
• :6.7% after fees
  
  
  Buffet constantly says just invest in S&P and forget
  
  Pabri takes 25% of profit after it beats last year by 6% and beats the previous high
  
  beats normal mutual fund charges but S&P index fund charges .1% or as close to nothing as it gets
  
  
  
  without 25% performace fee he matched the S&P
  
  he has had 25 years to beat S&P
  
  and has lost you 1.5% annualized return after performance fee so he is brilliant??????????? by what metric can you trust his foresight !!!!!!!
  
  now look at this chart where he falls waaaaay short of his mentor Warrne Buffet (BRK) so just buy some BRK ???
  
  
  
• Comparison: 1999 → 2026 Annualized Returns
  

  Investment	Annualized Return	Source
  Berkshire Hathaway (BRK.B)	≈10.9%
  S&P 500	≈8.41%	(from earlier S&P total‑return data)
  Pabrai Investment Funds (after fees)	≈6.7%	(based on reported 517% total return)

even crazier


Total Return Since 1965

• Berkshire Hathaway: ~5,500,000%
• S&P 500 (with dividends): ~39,000%

Annualized Return (CAGR)

• Berkshire Hathaway: ~19–20% per year
• S&P 500: ~10% per year

Pabri is not even within flying distance of Buffet

There is a reason why Warren Buffett is known as, "The Oracle of Omaha."

 

[jeff2]

Avoid the S&P and QQQ, and related index funds. They are WAY overvalued due to the AI hype. People have been blindly buying these index funds because they have worked in the past. However, that no longer applies.

Best best is a Value etf such as VTV, or BRKB.

Other strategy is to invest in foreign index funds. Some good ones are VEA and VCE.

Mohnish Pabrai is a billionaire investor, the Indian Warren Buffet. His advice is excellent.

How to Turn a $10 000 Investment to $1 000 000-Mohnish Pabrai

Learn more about investing by watching this video: https://youtu.be/Vbz3Rl22Jgk

www.youtube.com

I missed out on this Indian Warren Buffett:


AI Overview


Fairfax Financial Holdings has a stated long-term objective of achieving
15% annual growth in book value per share and has historically exceeded that goal.

Historical Long-Term Returns
Since its inception in 1985, Fairfax Financial has delivered strong long-term returns:

• Since Inception (1985): Book value per share has compounded annually at 18.7% (including dividends), while the stock price has compounded at 19.2% annually (including dividends).
• Past Decade: The company delivered annualized returns of 17.3%, significantly outpacing the broader Canadian market's 11.7% return over the same period.
• Past Five Years: The stock has seen a compound annual return of 47%, and a total shareholder return of over 460%.
• Past Year: Fairfax has generated a total shareholder return of approximately 36.32% to 48% (as of late 2025/early 2026).

 

[Indiana]

Covered Call ETFs NEVER EVER keep up to the stocks or indexes that they represent if the market is going up at all. And in down markets , yes you get your distribution , but the ETF is decreasing in value . In a long term bear market they may even have to cut distributions. And the fees are higher. In my opinion you are better off avoiding these.

Hamiton ETF’s are averaging 12-14%