Debate: Active vs. passive investing

[Rchmond]

I'd rather do 85% passive (with rebalancing) and pick three stocks each decade and hold them for at least ten years. For example Tesla, Netflix and AMD at the moment (Netflix and AMD overvalued in the short term are overvalued but over a decade should be good). No reblancing and re-evaluate every ten years. No fees to hold the equities. Most funds are overdiversified due to legislation and fear of losing massive mounts of cash. It is rare that in any one year there are more than three stocks that are obvious buys despite the usual analyst BS.

[eulalio]

No contest, passive investing is the better choice. reduce the fees of Wall Street, have a diverse Index Fund and stay the course for the long haul and you stand a good chance of beating the best Wall Street active investors.

[guillefranco]

Passive is better! Active is like betting.

[keyq]

Of course Wall street wants you to believe passive investment is better. That is how they poll your money into the market, otherwise you probably scared and won't invest at all. Even the passive legend Jack Bogle consistently timing the market and actually shifted his profile to 30 stock 70 cash on 2008 before crash. Vanguard never ad their active fund but take a look at those closed fund and Wellington particularly beats market for about 90 years now. Passive investor must be aware when the market starts to go down, you will be the biggest loser in the market, and that is why nobody cares about passive until 90s. The concept wall street sells you to convince you passive works is market will eventually go up. Sure it is for past 30 years. That is the best 30 years in market and who can premise it will continue. For your own good, don't put all eggs in one basket especially on a history high now. There are numbers of active fund can protect your money much better in down time like Vanguard Wellington. Put 60% to 70% on passive, and 30% to 40% on a decent active fund will serve you much better than pure indexing.

[gosolar]

The Asian girl on the left WOW! Gigiddy gigiddy!