3 ms·

I don’t think anyone would argue with the statement “if you possess an information advantage then you’re better off actively trading”. It’s mostly in the situat

I don’t think anyone would argue with the statement “if you possess an information advantage then you’re better off actively trading”. It’s mostly in the situation where you don’t have an information advantage that passive investing outperforms (on average). The fun part is that everyone _thinks_ they have an information advantage, but fewer really do.

jjeaff 6y ago
To complicate the benefit of an information advantage is that regardless of publicly available information, stock price is still set by psychology and that can be irrational. And that leads to the oft repeated "the markets can remain irrational longer than you can remain solvent."