Posts tagged 'Passive Investing'

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When Active Investing Beats Passive Investing

Do you want to be an active investor, or a passive investor? It's an elementary question that anyone getting started with investing has to be able to answer. 

But what does it really mean to invest "actively" or "passively," and is there such...


What Mutual Funds Look Like Next to Their Benchmarks (Losers)

The actively-managed mutual fund industry makes billions of dollars in management fees every year, but habitually fails, on average, to add much of any value to underlying investors. Here is how and why.


Asset Allocation: What It Is, and Why Thinking About It Will Make You Richer

When most people talk about investing, they are talking about the stock market, and specifically about individual common stocks within the stock market. The news is dominated by coverage of the Apple's, Google's and Starbucks' of the world.

But it turns out that what what is arguably several times more important than what stocks you own in your portfolio is how much of your portfolio is in stocks and how much of it is in bonds, commodities, real estate, cash or something else.

This article will look at this question by introducing the field of asset allocation, talking about what it is and why it important.


The First Grand Theory of Investing: Strategic Asset Allocation

Diversification is one of the most important principles in all of investing, but it unfortunately does not provide any easy answers in and of itself. Investors that understand the principle in its entirety still need to figure out somewhat the basic question of asset allocation: which assets should I hold in my portfolio and how much of each should I own?