Active investing vs passive investing Which leads to better investor returns?

2 years ago

Good Question!

This depends on the skill level of the active investor. If one is skilled they can run circles around passive investing but the skill set of an active investor being able to negotiate deals with sellers, arrange to finance, and manage deals to exit is not easy. Most people that attempt active investment find out that all that glitters is not gold and things go wrong on deals.

Passive investing is far better if you are investing with an experienced active investor and don’t have the experience yourself. It also lets you get close and see how an experienced investor handles a deal to bring about a successful result.

Both have their advantages and both have advantages and disadvantages.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com

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