Active vs. Passive reading for new investors

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TheDoctor
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Active vs. Passive reading for new investors

Post by TheDoctor »

I'm putting together an intro to investment/retirement basics presentation for some of my friends and colleagues, and as part of that I'd like to include some information on indexing and why it's preferred over active management. I'm trying to cite good sources for all of the information I provide.

There is a lot of research/articles on this topic, but what are some good ones for new investors?
pkcrafter
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Re: Active vs. Passive reading for new investors

Post by pkcrafter »

Have you checked out White Coat Investor? Check out first timers and search for indexing.

http://whitecoatinvestor.com/new-to-the ... tart-here/

Vanguard: The Case for Index-Fund Investing

https://pressroom.vanguard.com/nonindex ... esting.pdf
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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TheDoctor
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Re: Active vs. Passive reading for new investors

Post by TheDoctor »

Thanks for the links, those look useful.

I should also mention I plan to cite the Standard and Poor's Index vs. Active (SPIVA) reports, which have consistently shown indexing beats active management over longer time periods.
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bertilak
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Re: Active vs. Passive reading for new investors

Post by bertilak »

You might want to look at this related thread: http://www.bogleheads.org/forum/viewtop ... 0&t=122889.

It references a paper Mutual Fund Performance and the Incentive to Generate Alpha. See the first post in the thread for a link to the paper.
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Doc
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Re: Active vs. Passive reading for new investors

Post by Doc »

The Arithmetic of Active Management
William F. Sharpe

http://www.stanford.edu/~wfsharpe/art/active/active.htm
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.
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Re: Active vs. Passive reading for new investors

Post by jjh »

This is a good read on the subject..

http://www.amazon.com/What-Wall-Street- ... 0312335725
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