Over the past month, we looked at how you would have fared if you were an uncanny stock picker who consistently beat the market by 30 percent or so (“So you’re the world’s greatest trader? Taxes will fix that” and “No matter what, the long-term investor comes out ahead of the short-term trader”). As it turns out, capital gains taxes and other expenses take a giant bite. Even a very successful active trader barely keeps up with the long-term passive indexer.
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