I’ve posted Podcast #133 to the “RobCasts” section of the site. It’s called The Flat-Earth Society Still Believes in Passive Investing.

There was a time when everyone knew that the earth was flat. Why? Because everyone knew it. Everyone knows today that Passive Investing works for the same reason — because everyone knows it. The trouble with following an investing strategy that only works because everyone knows it works is that there is no longer any reason to believe it will work once everyone learns that it doesn’t work. Truly effective investing strategies work because they make sense and because the historical stock-return data shows that they work in the real world.