Updated: February 21, 2017
I love passive investing—but not for the reason you might think.
I love it because, as I’ll demonstrate in a moment, it’s caused plenty of stocks to become mispriced, creating opportunities for active stock pickers who do their homework.
This makes the market more of a meritocracy: the people who work harder, smarter and spend more time and energy on their investments can get a higher return than those who buy index funds like the Vanguard Total Stock Market ETF (VTI) and call it a day.
Because the more people buy VTI and other index products, the more they drive up the prices of all the stocks in that index.… Read more