Active vs passive investing
Investopedia definitions
passive: when a fund manager tries to mimic a fund
active” tend to have “gig fews” and recent research has questioned their ability to outperform the market
an extremely skewed definition
Can you put a value on the “fees” you pay
Nepsis doesn’t use benchmarks or publish returns
Don’t buy historical returns
do you know how returns were achieved
Do you know how much risk?
Benchmarks
if you don’t know how a benchmark is structured you should not compare apples to orange
Investors are focused on the cheapest option
Parabolic move:
stock prices go through the roof
Many investors don’t do as well as they could
investors doing the best they can has nothing to do with returns
June 26, 2019