Does “Click Stock 365” and indices, is long-term investing 충분한 to use index investing?

Index investing is investing that uses market averages such as the Nikkei 225, TOPIX, and S&P 500 as benchmarks and aims to track them; such investments focused on average returns are often referred to as passive investing.

One of the merits of index investing is that, since it targets the average, the performance will not fall below the average, meaning it’s an investment that won’t lose.

On the other hand, the downside of index investing is the opposite of the merit: there is no above-average performance, meaning it’s an investment where you cannot win.

However, as Warren Buffett points out, non-professionals should invest in index funds. Furthermore, Buffett’s recommended portfolio is “90% in S&P 500, 10% in cash.”

In Charles Ellis’s famous book, The Loser’s Game, the financial world is said to be a game where the ones who don’t lose win. It sounds odd, but as long as you’re conscious of not losing, you’ll eventually win.

The world of investing is a game of probabilities. It’s natural that aiming for high scores with low probabilities is less likely to succeed than aiming for solid numbers with a higher probability. Moreover, over the long term, compounding ordinary profits yields substantial effects.

Even Warren Buffett says the investment return is around 20% per year on average, so there may be no need to aim for several times or tens of times returns in a single year.

That’s why index investing. It’s true that indexing isn’t万能, but if you rethink, the idea becomes “isn’t index investing enough?”

Furthermore, with “Click 365” you can apply leverage to that index at a low cost. That’s the魅力 of “Click 365.”

By the way, the financial authorities’ ten-year comparison between active funds aiming for returns beyond the index and index funds shows which performed better. From these figures, over 70% of active funds underperform their index equivalents.

Indexing cannot be deemed absolute, but in the end, operating with an index means you’re likely to be wagering where you have the best chance to win.

(From the Financial Services Agency, Fiscal Year 2016 Financial Report)