Talk:Passive management

From Bogleheads
Jump to navigation Jump to search

Following the discussion from Talk:Indexing, blbarnitz has provided this definition:

Here is Harold Evensky's definition of passive investing from:
  • Harold Evensky (1997). Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets. pp. 481.ISBN 978-0786304783

Passive management is the antithesis of active management. Its core philosophical tenet is that by brains, hard work, and technology, a manager cannot, over time and net of costs, beat the system; he can, however, beat other managers. Passive management is often assumed to be the equivalent of index management. It is not. Index management is a special subset of passive management. A passive manager may make active trading decisions. His decisions, however, are based on information currently available to all investors, not on an ability to read between the lines or predict future trends and events. Index management is passive management with the added constraint that the manager does not make active trading decisions.

— Evensky,Wealth Management, p.322

--Blbarnitz 06:28, 7 January 2016 (EST)

Perhaps there can be some collaboration with finiki, as there is a similar effort to improve finiki:Passive investing. I have copied blbarnitz's comments to finiki:Talk:Passive investing.

--LadyGeek 17:31, 7 January 2016 (EST)

I've got two (long winded) thoughts. Given that passive vs. active is a regular topic on the forum (datapoint: there are 182 topics containing 'passive' in their subject), it seemed lacking to not have an article with this subject matter in the wiki. You'll note that this article has been categorized in Glossary as I didn't see the will for it to develop into a full article. As such, it should just cover the basic tenets. As to the quote, my only thought is who is Evensky? And why quote him? If the quote was from Bogle, Bernstein, Ellis, Sharpe et al that frequently get discussed on the forum, then I could see value in using their quote. There are already a number of 'heavyweights' cited in the article, isn't that enough? As I have never heard of Evensky, nor recall seeing him referenced elsewhere in the forum, then I'm left to question the value and contribution of the quote. Lastly, this wiki and finiki address different target audiences, I don't see the need to mirror content back and forth. Given the collaborative nature of the wiki, if other editors feel inclusion improves the article, then be bold. --Peculiar Investor 17:55, 7 January 2016 (EST)
In re: Evensky, see Harold Evensky Wikipedia. A google search is also helpful--Blbarnitz 21:29, 7 January 2016 (EST)
Before I replied I'd done a bunch of Googling and searching of the BH forum. The way the Wikipedia article is tagged doesn't give me confidence that Enensky and his work is widely known. --Peculiar Investor 07:58, 8 January 2016 (EST)