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That's not what "active" or "passive" mean in the investing context. Active investing refers to active equity or bond selection and investment with the goal of

That's not what "active" or "passive" mean in the investing context. Active investing refers to active equity or bond selection and investment with the goal of generating excess alpha (i.e. beating the market) Buying a traditional, managed mutual fund is a form of active investing. Passive investing involves buying a large, diversified portfolio of equities and bonds such that you hold a percentage of the whole market. This is "passive" because there's no attempt to select specific stocks. The goal is simply to match the market by owning a portfolio that's representative of the market. Buying an S&P 500 index fund is a form of passive investing. Both could be done in consultation with a financial advisor.

xiphias2 6y ago
Sure, you are right, but even with that definition somebody could have just bought Apple/Google/Amazon/Facebook/Tesla/ other high growth stocks/Bitcoin 10 years ago, and just waited. I see more of this kind of active investing happening (people reading Tesla blogs and going to meetups as an example, deconstructing software updates to see how the models are being ported 1-by-1 to the new framework. Financial advirsors generally don't do this in depth due diligents for products (or at least I haven't met any). As an example I read through a part of the Bitcoin source code to see how well it's written before investing in it, and I haven't seen any financial advisor who even looked at its github repo, and they already have opinion on it.
nly 6y ago
I mean it's a spectrum. If you put 100% of your wealth in SPY then you're actively choosing to disregard over half of the global investable equity market. Asset allocation is another active investment decision.
- jamesmark 6y ago
  Hello am mark barger from USA, i james mark . to say a very big thanks to Dr Macaulay for saving my soul from dying of Herpes Virus,i have being suffering from this Herpes Virus for two years now, i saw Dr Macaulay email address on a comment of someone who he has helped i was so encourage with the testimony been shared, i took the man email address and also contacted him for help he replied me and ask for some of my details which i provided and also ask for some useful Materials Needed for the herbal herbs which also did not cost me much, i provided all he needed from me to God be blessed this Dr prepared a parcel and send it to me followed with the instruction on how to take the herbal herbs medicine for 14 days. So surprisingly after taking the herbal herbs i went to the hospital for checkup to my greatness surprise my result came out (negative),i will never stop sharing my testimony of how i was cured from my Herpes Virus by Dr Macaulay you can also write him for any type of help you may need (Via:Dr.Macaulayherbalhome@yahoo.com) here his whatsapp https://wa.me/message/HJO6BWJEP4CFJ1mobile https://wa.me/message/HJO6BWJEP4CFJ1mobile number (+2349067522465) for help.

xiphias2 6y ago

Sure, you are right, but even with that definition somebody could have just bought Apple/Google/Amazon/Facebook/Tesla/ other high growth stocks/Bitcoin 10 years ago, and just waited. I see more of this kind of active investing happening (people reading Tesla blogs and going to meetups as an example, deconstructing software updates to see how the models are being ported 1-by-1 to the new framework. Financial advirsors generally don't do this in depth due diligents for products (or at least I haven't met any). As an example I read through a part of the Bitcoin source code to see how well it's written before investing in it, and I haven't seen any financial advisor who even looked at its github repo, and they already have opinion on it.

nly 6y ago

I mean it's a spectrum. If you put 100% of your wealth in SPY then you're actively choosing to disregard over half of the global investable equity market. Asset allocation is another active investment decision.

jamesmark 6y ago
Hello am mark barger from USA, i james mark . to say a very big thanks to Dr Macaulay for saving my soul from dying of Herpes Virus,i have being suffering from this Herpes Virus for two years now, i saw Dr Macaulay email address on a comment of someone who he has helped i was so encourage with the testimony been shared, i took the man email address and also contacted him for help he replied me and ask for some of my details which i provided and also ask for some useful Materials Needed for the herbal herbs which also did not cost me much, i provided all he needed from me to God be blessed this Dr prepared a parcel and send it to me followed with the instruction on how to take the herbal herbs medicine for 14 days. So surprisingly after taking the herbal herbs i went to the hospital for checkup to my greatness surprise my result came out (negative),i will never stop sharing my testimony of how i was cured from my Herpes Virus by Dr Macaulay you can also write him for any type of help you may need (Via:Dr.Macaulayherbalhome@yahoo.com) here his whatsapp https://wa.me/message/HJO6BWJEP4CFJ1mobile https://wa.me/message/HJO6BWJEP4CFJ1mobile number (+2349067522465) for help.