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Does "buy the dip" actually work?

"Buy the dip" sounds like smart investing — wait for prices to fall, then pounce. But 60 years of evidence reveals the strategy underperforms passive investing more than 60% of the time. Here's why waiting for the perfect moment costs more than it saves.

Robin Powell

Terry Smith, founder of Fundsmith Equity Fund, pictured on the fund's website alongside the firm's investment promises — as the manager blames index funds for five consecutive years of underperformance.

Is Terry Smith right to blame index funds for his struggles?

Terry Smith blames index funds for Fundsmith's five-year slump — but international market data, factor analysis, and 2024's high-dispersion conditions tell a different story. Here's what the evidence actually shows.

Robin Powell

Jan 156 min read

A tortoise wearing a gold medal on a ribbon, symbolising slow and steady success. The image highlights how passive investing, often dismissed as boring, can actually deliver stronger long-term results than active strategies.

Does the name passive investing hold better investing back?

“Passive investing” may sound like settling for average, but the evidence shows the opposite. By avoiding hype and sticking to a disciplined process, index investors tend to outperform. Yet the label itself puts people off. Charley Ellis and behavioural research reveal how one word is shaping outcomes — and why it’s time to reframe the debate.

Robin Powell

Aug 26, 20257 min read

The hidden costs of passive investing: how significant are they?

The hidden costs of passive investing can add hundreds of basis points annually beyond headline fees. New research reveals how index funds face invisible expenses from rebalancing friction, tracking errors, and market impact that never appear on fund fact sheets. UK investors may pay far more than the advertised 0.1% management charge.