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?
Active vs. Passive reading for new investors
Re: Active vs. Passive reading for new investors
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
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.
Re: Active vs. Passive reading for new investors
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.
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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Re: Active vs. Passive reading for new investors
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.
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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Re: Active vs. Passive reading for new investors
The Arithmetic of Active Management
William F. Sharpe
http://www.stanford.edu/~wfsharpe/art/active/active.htm
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.