The World’s Most Expensive Hobby (Part 3)
- To invest wisely, you need to define a benchmark before you actually make any investment decisions.
- Even if you have a benchmark in mind, an active investment philosophy brings a whole host of issues when it comes to tracking investment performance.
- These issues ultimately obscure the true performance of active investors, which makes it very difficult to figure out if one is investing prudently or not.
- This obscurity is what likely perpetuates an active investing philosophy; however, over time, this can lead sub-optimal investment performance for the average investor.
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