Active Investment Management
Misses The Mark
The Bottom Line
In today’s global economy, it is hard to fathom that a single investor, or even a large investment research team, will have enough time, knowledge, resources and skill to correctly foresee and assess all of the macro economic issues, micro economic issues, governmental issues, technological changes, legal issues and unique business risks in order to correctly determine the value of a company. Moreover, even if all of these issues can be accurately assessed, there is no way for an investor to gauge how other investors will assess all of this information, or how their assessment will affect their investment decision. Therefore, without this level of insight, it is impossible to know how the price of a security will change, the frequency with which its price will change, the magnitude of its price change, or the direction in which its price will change
http://www.investopedia.com/articles/trading/09/active-investment-management-critique.asp
Is the U.S. stock market rigged?
|Steve Kroft reports on a new book from Michael Lewis, “Flash Boys,” that reveals how a group of unlikely characters discovered how some high speed traders work the stock market to their advantage.
http://www.cbsnews.com/videos/is-the-us-stock-market-riggedAre Outperforming Active Managers
Lucky or Skillful?
http://www.cbsnews.com/8301-505123_162-37841406/are-outperforming-active-managers-lucky-or-skillful/
If Yale isn’t smart enough to beat the market, who can?
http://www.dailyfinance.com/2009/09/23/if-yale-isnt-smart-enough-to-beat-the-market-who-can/
Harvard Proves (AGAIN) That Active Management Sucks
Even the smartest smarty-pants struggle to beat the benchmark
http://slant.investorplace.com/2012/09/harvard-endowment-active-management/