Index Funds vs Individual Funds

[DesertCat]

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Why would successful investors like Peter Lynch and Warren Buffet suggest individual investors can outperform the market over an extended period of time?

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I think Peter Lynch underestimates the disposition requirements, and I think Buffett says you can beat the market assuming you have the right disposition. He often says the math skills needed are trivial, the IQ requirements aren't much above average ("You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ."), it's all in the ability to be patient and not get influenced by things that don't matter.

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To invest successfully does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding the framework." - Warren Buffett

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