Active and Passive Strategies for Investing
There are two main methods for investing in stocks and they are called active and passive management. The difference between them has nothing to do with how much you are active or passive. Active investors get to choose their own stocks, bonds and other investments; whereas passive investors leave their holdings follow an index created by some third party. As a successful businessman with over 25 years in the investment management industry, the CEO of Willow Creek Capital Management has gained an in-depth perspective and knowledge of how investing works. When people talk about stock investing, they usually mean active investing. Most people may think that this in fact is the superior strategy, but that isn’t necessarily the case always. On the long run, most actively managed stock funds have underperformed S&P 500 index, the most popular and prominent benchmark for index funds. "That’s way many people prefer to go with an alternative to active management. Some people j...