Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

The luxurious Omni Orlando Resort at ChampionsGate, where The Money Show Orlando 2017 took place, is situated in a picturesque, secluded location 25 miles southwest of Orlando. Attending the event became my second Stock Following, Inc. business trip, and it made me think about the psychology of that category of investors actively seeking a passive investment return.

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

The Money Show Orlando, 2017
Orlando, Florida

The distinguishing feature of the show was the excellent selection of speakers, companies, and private investors who had come to Florida from all over the world to learn about new investment products, get tips and take in investment advice.

Attending such events is costly – both in terms of time and money – for private investors. At least it is significantly more exacting than a StockFollowing® annual subscription and the time required to make 15 trades to obtain a 22.32% return by investing in SPY (336.98% using 3x leveraged ETFs) in 2016. Therefore, for me there must be a good reason why private investors, especially those seeking a passive investment return, attend such events. All the more so, because despite excellent organization, everything this show offered could be found in the Internet for free. The Fidelity Investments’ managing director convincingly explained why investing in their mutual funds is a winning strategy, online brokers advocated the benefits of their platforms, and Peter Schiff predictably advocated investing in gold.

It was surprising to see people, especially those investing in index funds, travel to Florida – proving, after all, that they are active investors – in order to attend numerous sessions during which they collected and wrote down advice on long-term passive investing in index, mutual funds, and gold. What’s the point of journeying to Florida to get this information?

Obviously, active investing is not for everyone. Everybody knows that passive investing reduces expenses and is more tax efficient. It is true that for many active investing may be simply less profitable due to the need for a strong investment strategy and discipline to follow its rules. And one can go on and on about the risk of active investing (although investing in gold, as we learned in 2013, when its price fell from $1,900 to $1,200 USD, is not less riskier). However, for those who are de-facto active investors, it is better to be honest with oneself. Choosing active investing and taking the first step, the second must be taken also. Instead of continuing to actively look for an abnormal passive investment return, it is better to either find or create an active investment strategy specifically designed to outperform the S&P 500 in the long-run.

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

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