I am exceptionally well positioned to actively manage my own investments. My day job is investing. I have a variety of subscriptions and research tools available to assist in evaluating investment prospects. I follow the markets almost every day as part of my job and as a personal interest and hobby. I have an undergraduate degree in economics and a master’s degree in business administration. I read extensively on the economy, the markets, and investing.
So you might assume that I actively manage my personal investments. I don’t. Most of my money is invested in passive (indexed) strategies. I choose active management only in markets or asset classes that have unique characteristics that require active management, such as hedge funds or private equity.
Let me explain. Over the past several chapters, we have determined the following:
With these concepts in mind, we can now effectively evaluate the ...