A 20-year-old who just landed their first real job recently posed a simple question online: “Is the ‘S&P 500 and Chill’ strategy still viable in 2026, or am I missing something?” With $500 a month ready to invest, the young worker said on Reddit’s r/investingforbeginners that their dad advised dumping everything into a low-cost S&P 500 fund like Vanguard S&P 500 ETF (NYSE:VOO) or State Street SPDR S&P 500 ETF Trust (NYSE:SPY) and forgetting about it for 30 years. But with AI reshuffling the biggest compan ...

Outperformance Was Elusive For Active Managers in 2025Almost [1,000 active ETFs] launched in 2025, but did their performance substantiate the demand? Across the universe of funds, active managers for ETFs and mutual funds found that outperformance was elusive compared to their passive peers based on the latest [Morningstar US Active/Passive Barometer report].Only 38% of actively managed ETFs as well as mutual funds survived and outperformed their passive counterparts in 2025. This represented a 4% drop in p ...

I became a Michael Burry fan the way most retail investors did, through The Big Short. Watching Christian Bale play the eccentric hedge fund manager who saw the housing collapse before Wall Street did turned Burry into a mythic figure. But I knew about him before Hollywood turned him into a character. In markets, Burry wasn’t just “the guy who shorted subprime.” He made his name betting against mortgage-backed securities in 2005 to 2007. But his career didn’t stop there. He bought Apple in 1998, and ag ...

Industry Overview - The Zacks Investment Management industry is under pressure from rising technology and AI-related expenses, which are expected to impact near-term profitability despite potential long-term efficiency gains [1][4] - The industry is characterized by companies managing securities and funds for clients, earning revenue through service fees or commissions [3] Key Themes Influencing the Industry - Rising Expenses: Increased technology and AI-related costs are expected to hurt profits in the near term, alongside elevated compliance costs due to regulatory requirements [4] - Demand for Passive Investing: A shift towards low-cost passive funds has compressed fees and intensified competition, leading to reduced revenue per dollar of assets and limiting earnings growth [5][6] - Mergers and Partnerships: Firms are pursuing mergers and partnerships to achieve scale, cut costs, and diversify offerings in response to competitive pressures [7][8] Performance Metrics - The Zacks Investment Management industry has underperformed the S&P 500 Index, with a collective gain of 8.4% over the past two years compared to 41.6% for the S&P 500 [13] - The industry's current Zacks Industry Rank is 137, placing it in the bottom 44% of over 250 Zacks industries, indicating a bleak earnings outlook [9][10][11] Valuation Insights - The industry has a trailing 12-month price-to-tangible book ratio (P/TB) of 4.07X, significantly lower than the S&P 500's 11.78X, indicating a discount compared to the broader market [17][19] - Compared to the broader Finance sector, the Zacks Investment Management industry is trading at a discount, with the Finance sector's P/TB at 6.06X [19] Company Highlights Ameriprise Financial (AMP) - As of December 31, 2025, Ameriprise had total assets under management of $1.7 trillion, with a CAGR of 9.2% in net revenues over the past five years [24][25] - The company has been restructuring its business and focusing on core competencies to improve market share [26] - Ameriprise shares have gained 4.2% in the past three months, with a Zacks Rank of 2 (Buy) [28] SEI Investments Company (SEIC) - SEIC administered $1.9 trillion in assets as of December 31, 2025, with a CAGR of 9.9% in total assets under management over the past five years [31][32] - The company has made strategic acquisitions to enhance its business capabilities, including the recent acquisition of Stratos for $440.8 million [35][36] - SEIC shares have gained 0.7% in the past three months, also carrying a Zacks Rank of 2 [36] Federated Hermes, Inc. (FHI) - Federated Hermes had $902.6 billion in assets under management as of December 31, 2025, with a CAGR of 7.8% over the past five years [38][39] - The company has been actively seeking alliances and acquisitions to expand its global presence [39] - FHI shares have gained 14.2% in the past three months, maintaining a Zacks Rank of 2 [42]

Core Viewpoint - The article emphasizes the importance of financial literacy and the risks associated with following dubious financial advice from social media influencers, advocating for a more traditional, passive investment approach as promoted by Warren Buffett and Charlie Munger [3][4][6]. Financial Literacy and Advice - A significant portion of young Americans, specifically 42% of those aged 18 to 29, seek financial advice on social media, highlighting a concerning trend in financial literacy [4]. - Only 48% of adults could correctly answer more than half of the financial questions in the 2025 TIAA Institute-GFLEC Personal Finance Index, indicating a widespread lack of financial knowledge [3]. Investment Strategies - Buffett and Munger argue that most investors struggle to outperform the market, making index funds a suitable choice for average investors, with the S&P 500 delivering an average annual return of over 14% in the past decade [6][7]. - From 2003 to 2023, 98.6% of actively managed domestic equity funds underperformed the S&P 500 Equal Weight Index, reinforcing the case for passive investing [7]. Real Estate Investment - Berkshire Hathaway has invested nearly $1 billion in homebuilding companies, indicating a belief in the growing demand for U.S. housing [13]. - Platforms like Arrived allow investors to buy shares in rental properties without the responsibilities of homeownership, making real estate investment more accessible [14][15]. - Lightstone DIRECT offers accredited investors direct access to multifamily real estate opportunities, with a historical net IRR of 27.6% and a 2.54x historical net equity multiple since 2004 [21].

Investment Vehicles - Exchange-traded funds (ETFs) trade on major exchanges and can be bought or sold at any time, providing strong investor demand and liquidity [1] - High-yield money market funds aim to generate income while keeping the principal stable and liquid, offering higher interest rates than traditional savings accounts [8][9] - Certificates of deposit (CDs) are considered safe investments but come with liquidity issues and penalties for early withdrawal, typically paying interest quarterly [3][4] Investment Recommendations - The SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE: BIL) is recommended for its 4.12% yield and monthly dividend payments, making it suitable for conservative investors [6][7] - The BlackRock Liquidity Funds - FedFund (BFCXX) is highlighted for its 3.68% yield and daily liquidity, investing primarily in cash and U.S. Treasury securities [13] Economic Context - The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026, benefiting approximately 75 million Americans, with an average monthly increase of about $56 for retirees [5]

Group 1 - The article discusses the violation of data integrity, indicating that the core content relies on unverifiable data, which cannot be corrected through minor edits [2][3] - It emphasizes that the article must be completely rewritten with verified source data due to the fundamental issues with the original data [3][5] - The article highlights the importance of adhering to rules regarding data integrity, stating that the cited data itself is the violation [5] Group 2 - Dave Ramsey's commentary on consumer sentiment indicates a shift towards recessionary concerns, urging individuals to practice financial discipline to avoid unnecessary debt [7] - The investment landscape is evolving, with a growing realization among investors that passive investing may lead to disengagement and suboptimal returns [8] - New investment opportunities are emerging, such as apps that allow self-directed investing with minimal initial funding, potentially offering significant returns [9]

Core Insights - Warren Buffett recommends investing in an index fund that tracks the S&P 500, with the Vanguard S&P 500 ETF (NYSEMKT: VOO) being a top choice [1] Group 1: ETF Overview - The Vanguard S&P 500 ETF holds shares of approximately 500 large and profitable companies listed on U.S. exchanges, making it a bet on the success of the American economy [2] - The ETF's portfolio is not equally weighted; the largest companies have the highest weighting, with the "Magnificent Seven" stocks comprising 35% of the ETF [3] Group 2: Performance and Fees - The Vanguard S&P 500 ETF has delivered a total return of 324% over the past decade, meaning a $10,000 investment in early February 2016 would be worth $42,420 today [4] - The ETF has a low expense ratio of 0.03%, allowing investors to retain more of their returns over time [5] Group 3: Market Considerations - Current market conditions show record trading levels, with concerns about a potential bubble indicated by a CAPE ratio of 40.7, similar to levels seen during the dot-com bubble [6] - Despite concerns about future returns, the market is influenced by factors such as passive investing, favorable monetary and fiscal policies, and the growth of tech enterprises [7]

Core Insights - Cardinal Health reported a strong second-quarter performance with non-GAAP EPS of $2.63, exceeding the consensus estimate of $2.38 by 10.5% [2] - Revenue increased by 19% year-over-year to $65.63 billion, surpassing the estimate of $64.79 billion [2] - The company's shares rose 8% over the past week, significantly outperforming the S&P 500's 23% decline during the same period [2] Segment Performance - All five operating segments of Cardinal Health achieved double-digit profit growth [3] - The Pharmaceutical and Specialty Solutions segment, the largest, generated $60.7 billion in revenue, reflecting a 19% increase driven by brand and specialty pharmaceutical demand [3] - Global Medical Products and Distribution revenue rose 3% to $3.26 billion, with segment profit more than doubling to $37 million, a 106% year-over-year increase [3] Financial Metrics - Non-GAAP operating earnings increased by 38% to $877 million [4] - Operating cash flow improved to $686 million from a $396 million outflow in the prior-year quarter [4][8] Guidance and Outlook - Management raised the full-year fiscal 2026 non-GAAP EPS guidance to $10.15 to $10.35, indicating a growth of 23% to 26% [5] - The Pharma segment profit growth outlook was increased to 20% to 22% from the previous 16% to 19% [5] - Guidance for the GMPD segment profit was raised to approximately $150 million from $140 million [5] Capital Allocation - Cardinal Health completed a $750 million annual baseline share repurchase and achieved a targeted leverage ratio of 3.2x [6] - The company declared a quarterly dividend of $0.52 and is expanding through acquisitions, including Solaris Health, a leading urology MSO with over 750 providers [6] - The stock trades at a forward P/E of 22x, with analyst price targets averaging $234, reflecting a modest premium to growth expectations despite an 81% gain over the past year [6]

No matter what people say, only two companies—Alphabet Inc.’s (NASDAQ: GOOGL) Waymo and Tesla Inc. (NASDAQ: TSLA)—are fighting for supremacy in the completely self-driving car industry. (This excludes China.) So, Waymo just put $16 billion into its war chest. By some measures, it already has a lead over its rival. 24/7 Wall St. Key Points According to The New York Times, the new Waymo funding came from Alphabet, Dragoneer Investment Group, DST Global, and Sequoia Capital. The fact that investors outside ...