12There’s No Such Thing as a Free Lunch


I begin this chapter by changing everything I said so far. I said you couldn’t beat the market, except by chance—especially after the fees charged by investment managers and advisors.

Now I say, “You want to beat the market? OK, you can.” Not only can you beat the market, but it’s very easy to do. Here’s how. Go out and borrow some money. If you want to beat the market by a lot, borrow a lot of money. Invest it in the stock market.

Consider an example (see Exhibit 12.1 on page 150). Suppose your investment portfolio is $200,000. If you invest that in the stock market, let’s say you can expect, in the ...

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