Active vs. Passive Investing: How Hard Is It Really to Beat the Market?

Beating the market sounds simple, but the evidence says otherwise. This article breaks down why most professional active managers fail to outperform over time (SPIVA), why long-term market returns are driven by a small group of “superstar” stocks, and how behavioral traps and the “behavior gap” can quietly sabotage results. You’ll also learn the basics of how stocks are valued and why broad diversification is often the most reliable path for long-term investors.