"Index investing outperforms active management year after year"
- Jim Rogers
About this Quote
This quote by Jim Rogers recommends that index investing, which is a passive investment technique, is more effective than active management, which is an active financial investment strategy. Index investing includes buying a portfolio of securities that tracks a particular market index, such as the S&P 500. Active management, on the other hand, involves actively picking and trading securities in order to generate returns. The quote indicates that index investing has actually been more effective than active management over an extended period of time. This might be due to the fact that index investing is an inexpensive method that does not require the very same level of research and analysis as active management. In addition, index investing is less dangerous than active management, as it does not need the exact same level of speculation and forecasting. Therefore, it is likely that index investing has actually been more successful than active management over the long term.
About the Author