The Paradox of Skill

95% of trading on the New York exchange is either machines or professional people. The first index fund that comes out by Jack Bogle, they were hoping to sell you right in the book $150 million worth and they could barely get it over $10 million when they first launched it. Why did the first index fund do so poorly? It wasn't a flop. It was a big flop. Michael Mobuson calls this the paradox of skill. How is there any room to beat them when you're playing at such high levels? They are so much better than managers where 20 years ago it's night and day.