Passive investing: How to get rich by being lazy

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Hello! Here’s today’s 2-minute guide to demystifying money and making you richer

How to get rich while being lazy

New year, new benchmark. It’s January and all the banks, investment funds and asset management platforms are resetting their historic results to show how well they did in 2023. It’s a good time to compare strategies.

Spoiler alert: Once again, the laziest investors probably did better than their more active counterparts, meaning that the experts did worse than the market as a whole.

• This is one of the most misunderstood — and most common — aspects of investing. Passive investors tend to beat active investors in the long-run. And 2023 was a banner year for the infamous phenomenon.

Here’s how two of the most-watched market benchmarks performed in 2023:

• The S&P 500 (an index of big, international companies registered in the US) went up 24.23%.

• The Nasdaq Composite (an index of about 3,700 stocks dominated by tech companies) went up 43%.

• Source.

So how did the professionals do? 

let’s l…