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DylanBohlender | 2 years ago

"Passive investing" is a largely beaten-to-death turn of phrase because you can't truly be a passive investor in anything. Every "passive investing" focused fund has some degree of selection bias, because the index itself is arbitrarily declaring that it's only buying the "top 500" or whathaveyou. So you're "passively" investing in the top 500 companies, which means "actively" choosing not to invest in the rest.

You can go one level up from there and buy VTSAX if you want to buy everything and truly "passively" invest in US stocks, but again, you'd be "actively" choosing not to invest in international stocks then.

It's turtles all the way down.

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marcusverus|2 years ago

You’re better off buying the whole market than picking stocks. You’re better off buying and holding than trying to time the market. Splitting hairs with regards to the definition of ‘passive’ doesn’t change these simple facts.

Passive investing remains the best path for the middle class to financial security and comfortable retirement. Spreading your ignorant navel-gazing on this matter could potentially do real damage to real people’s financial futures. Please stop.