Active vs Passive Management

[DblDoc]

Quote:

Originally Posted by clifp I pretty much agree with this. I think both stock picking and asset allocations are skills and some people are significantly better at than others. By asset allocation, I mean deciding that stocks, bonds, timberland etc are relatively under or overvalued. The problem is that (like virtually all human activities) there is a significant element of luck. More so than in most fields, I think it a takes very long time (probably a decade or more) to figure out who is lucky and who is good. And as I often say in poker "it is better to be lucky than good".

And if your neither then "goose" your returns with a little insider trading or outright fraud Wall Street insider trading probe widens - The Globe and Mail.

DD

[clifp]

Quote:

Originally Posted by DblDoc And if your neither then "goose" your returns with a little insider trading or outright fraud Wall Street insider trading probe widens - The Globe and Mail. DD

I remember my professor of Engineering Economics,had a simple defense of indexing. "If insiders do better than average, and indexers do average, what does that leave for everyone else."

It is pity that these SOBs will get to serve their sentence in minimum security prisons for non-violent offenders.