Active Management (Mutual Funds/Brokers) Vs Passive Management (Asset Classes and Index Funds)

The argument has raged for years that mutual funds and brokers can deliver better returns by their ‘knowledge’ concerning the market. While many investors fall prey to this misinformation, the truth has slowly gotten out and investors are learning. While managed funds still prey upon the ‘greedy’ with the idea that they can pick winners, facts show that you are more likely to be a ‘loser’ and achieve below market returns as a result. Study the journals and documentation and then make the decision. Trying to pick winners or use mutual funds and brokers that peddle this garbage are setting you up for failure. Stock picking, market timing and most importantly, track record investing (looking at past performance), is absolutely no way to invest.

The Great Debate: Active Vs. Passive

Determinants of Portfolio Performance: Is it really manager skill?

Random Walk Down Wallstreet

History of Market Efficiency

Modern Portfolio Theory: Textbook Edition