An active investor. This title usually conjures an image of an investor who researches the best selection of stocks and buys them at the right price at the right time in order to outperform the average return of the market.
A passive investor, on the other hand, conjures an image of an investor who just buys into index funds with the purpose of achieving the same return as the market.
While my investment philosophy aligns with passive investing, when asked whether I am an active or passive investor, I still struggle to give a consistent answer.
I am a passive investor…kind of.
Maybe the line between passive and active is not so clear after all. Maybe instead of defining in either passive or active, we should define it in varying degrees of passive-ness to active-ness of the investment strategy.
In this article, I will attempt to describe the
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