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Tim Edwards, S&P Dow Jones Indices – The Relative Importance of Skill, Conviction and Blind Luck in Beating the Market

Tim Edwards from John Lothian News on Vimeo.

“I believe that the next big trend in our industry is going to be far more customized, far more bespoke, and it’s all going to be available at low cost because of technology.”

When Google was readying for its IPO in 2004, employees were given educational courses in finance and investing. Then senior vice president Jonathan Rosenberg was worried that Google employees — many soon to be minted millionaires — would be taken advantage of by all manner of asset managers and brokers. During the presentations, a series of notable figures all gave the same advice to Google employees, “don’t try to beat the market.”

Through the lens of that story, Tim Edwards, senior director of index investment strategy for S&P Dow Jones Indices, explores the history of indexing in this MarketsWiki Education Video. Edwards follows indexing from the Vanguard origin days to now, an era when 99 percent of European fund managers invested in U.S. stocks could not beat their benchmark.

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Graduate of University of Minnesota School of Journalism and Mass Communication