Tell that to Warren Buffet!

Seriously though, of course the average investor cannot beat the market, it doesn't mean it isn't possible for an individual to do so, or that it is all down to chance.

One approach is to focus on small companies.

Most active funds will not invest here (it is not worth the time when they would only be able to invest a tiny fraction of their funds).

As such these companies tend to be under-researched (not necessarily the same as under-valued though), so if you're willing to put in some leg-work and a lot of patience, there can be some good opportunities.